Imposition of a New Tax on the Delivery of Taxable Goods through Auctions

The Ministry of Finance (Kemenkeu), through the Directorate-General of Tax (Direktorat Jenderal Pajak – “DJP”), is finalizing a Draft Regulation of the Minister of Finance (Rancangan Peraturan Menteri Keuangan – “RPMK”) on Procedures for the Collection of Value Added Tax (“VAT”) on the Delivery of Taxable Goods (Barang Kena Pajak – “BKP”) through Auction Organizers. The drafting of this regulation is driven by the need to provide legal certainty regarding other value used as the Tax Basis (Dasar Pengenaan Pajak – “DPP”) for the delivery of BKP through auction organizers.

“It is currently being harmonized, as the VAT amount previously followed the provisions under Regulation of the Minister of Finance No. 11 of 2025 on Provisions of Other Values as DPP and Certain VAT Amount, as amended by Regulation of the Minister of Finance No. 53 of 2025 (collectively referred to as “PMK 11/2025”),” said Yon Arsal, the Expert Staff to the Minister of Finance for Tax Compliance, to Hukumonline.

This RPMK will propose other values as DPP for the delivery of BKP through auction organizers, set at 11/12 of the auction principal, differing from the current provision, which uses 11/12 of the auction price. In addition, the key provisions in this RPMK also include an amendment to Article 4 of PMK 11/2025, which eliminates the stipulation on other value for the delivery of BKP through auctioneers as regulated under Article 2 letter i of Regulation of the Minister of Finance No. 75/PMK.03/2010 of 2010 on Other Values as DPP, as amended several times, most recently by Regulation of the Minister of Finance No. 121/PMK.03/2015 (collectively referred to as “PMK 75/2010”).