Want to Buy a VAT-Free House in Indonesia ? Here's What You Need to Know!
Want to Buy a VAT-Free House in Indonesia ? - Good news for those of you looking to buy a house this year! The government has once again launched a VAT-free housing incentive for 2024.
Minister Airlangga Hartarto announced that President Joko Widodo has exempted value-added tax (VAT) on home purchases under IDR 2 billion.
Additionally, the government will also provide administrative cost assistance of IDR 4 million for the purchase of houses for low-income communities (MBR) until 2024.
This incentive aims to maintain purchasing power in the property sector and stimulate national economic growth.
With this policy, you no longer need to pay VAT on landed houses with a maximum selling price of IDR 2 billion! For more details, let's explore the ins and outs of VAT below.
Want to Buy a VAT-Free House? Here’s What You Need to Know!
1. Understanding VAT in Buying and Selling a House
VAT on home purchases will be paid by the buyer or consumer to the seller, and then remitted by the seller to the state.
Furthermore, VAT on home purchases also applies to new housing or property sold by developers to consumers.
Meanwhile, secondary property or property sold from one person to another is not subject to VAT.
2. Terms and Conditions for the VAT-Free Home Program
Minister Sri Mulyani explained that the VAT-free home purchase incentive will be given from November 2023 to June 2024.
Meanwhile, for July to December 2024, the VAT borne by the government is 50%! The price limit for VAT-free houses, as explained, is IDR 2 billion.
So, if you buy a house under IDR 2 billion like the one at Anvaya Townhouse , you will automatically get incentives.
However, there are several rules that govern this VAT-free home purchase incentive:
- The VAT-free program is specifically for new home purchases only. In other words, second-hand home purchases will not get this incentive. Houses must come from developers or PKP who participate in this incentive.
- VAT-free home purchases are only for one Population Identification Number (NIK) with one new home purchase until June 2024
3. Conditions for Getting VAT-Free Housing
There are several conditions for obtaining VAT-free housing that you should be aware of.
Referring to PMK Regulation No. 21/PMK.10/2021 regarding the provision of VAT incentives, the following conditions must be observed:
- Property eligible for government coverage must meet the following conditions:
- Handover of the property takes place following the signing of the deed of sale and purchase (AJB).
- The handover of the property occurs once the sale and purchase agreement has been signed and payment has been made in full.
- Minutes of handover that meet the requirements for receiving VAT incentives must include at least the following:
- Name and NPWP (Taxpayer Identification Number) of the Taxable Entrepreneur (PKP) seller.
- Name and NPWP or NIK (Population Identification Number) of the buyer.
- Handover date.
- Identification code of the house that has undergone the handover process.
- A stamped statement confirming that the handover of the building has been completed.
- Handover minutes number.
- The handover report must be registered in the application system of the ministry responsible for housing and residential affairs no later than 7 months after the month in which the handover occurs.
- New houses are delivered in a finished condition (ready stock) and are ready to be occupied.
- Properties that receive VAT incentives may not be resold within one year.
With the VAT-free home policy, you do not have to pay the 11% VAT! However, you should review the terms and conditions outlined above, including the validity period.
Are the conditions and time period for VAT-free houses clear? What are you waiting for? Explore the list of VAT-free houses at Rumah123 to find your dream home with the best deals!
Thus the article that we can inform you about Want to Buy a VAT-Free House in Indonesia? Hopefully useful.
