Updated Provisions on PPN for Deliveries of Battery-Powered Vehicles Borne by the Government: PKP May Now Be Granted Tax Overpayment Refunds

Earlier in 2023, the Minister of Finance (“ Minister ”) introduced Regulation No. 38 of 2023 on Value-Added Tax (Pajak Pertambahan Nilai– “ PPN ”) on Deliveries of Certain Types of Four-Wheeled, Battery-Powered Electric Motorized Vehicles (Kendaraan Bermotor Berbasis Listrik– “ Battery-Powered KBL ”) and Certain Types of Battery-Powered KBL Buses Borne by the Government for the 2023 Fiscal Year (“ Regulation 38/2023 ”), which will hopefully realize the government’s goal of transforming Indonesia’s roads from the use of gasoline-powered vehicles to electrically-powered vehicles, as well as expand market demand for Battery-Powered KBL. [1]