Indirect taxes like customs duties and value added tax (VAT) are often overlooked in business planning which can lead to unnecessary expenses and inefficiencies. It is important to regularly review a business's indirect tax position to identify potential savings. Common challenges include keeping up with filing obligations, obtaining refunds, managing risks and audits. Hiring indirect tax specialists can help ensure compliance and maximize savings. The document provides an overview of the indirect tax services offered by Deloitte Indonesia such as VAT registration, customs duty consultation, and representation in audits to help businesses navigate indirect tax issues.

1. Managing Indirect Taxes in an Uncertain World
Plan early. Plan often.
Indirect tax is often overlooked in business planning Our Solutions
and decision making. Possible consequences include VAT and Sales Tax on Luxury Goods
expense and inefficiency. As you adapt your business We offer specialist advice on all types of transactions.
plans to meet market conditions, consideration should Services include:
be given to a review of your Indirect Tax position – in
relation to Customs Duty and Value Added Tax – to • VAT registration and compliance
identify real savings in both absolute and cash-flow • VAT health check (review)
terms. • VAT refund
• Representation in VAT audit and litigation
Challenges that businesses usually face • Structured VAT planning and consultation
• Monitoring filing obligations, refunds, risks and • Assistance in obtaining VAT facilities from the tax
audits for indirect taxes? authorities
• Lacking an effective way to help your operational
people with indirect tax issues? Customs and international trade
• No in-house indirect tax specialists to help you in We advise on duty requirements, taxes payable at
answering your questions on indirect taxes? importation, and other regulatory and commercial
• A VAT or Customs Duty compliance process which is concerns that can create costly delays as you import
neither efficient nor cost-effective? and export goods. Services include:
• Worrying that the personnel preparing the indirect
tax returns do not have up-to-date technical indirect • Valuation and classification
tax knowledge and expertise? • Customs duty refund
• Representation in customs audit and litigation
Further, a weak VAT and Customs administration • Customs duty and excise consultation
system may cost you heavy administrative sanctions, • Assistance in obtaining customs duty facilities from
such as interest rates or penalties. Below are a few the customs authority
examples of the specific VAT and Customs penalties
that can be imposed: Regional Tax
• Regional tax audit, objection, and appeal in the tax
VAT court
• 100% surcharge on disallowed carryovers to the • Regional tax planning
following month of excess input VAT
• 2% per administrative penalty of VAT base (2% of
sales) when VAT invoices are issued late, mistyped, or
not properly prepared
• Input VAT will not be recoverable if the relevant VAT
invoices received were not properly prepared by
vendors
Customs Duty
Penalty ranging from 100% to 1000% for understated
value of imported goods in the import declaration.
But you don’t have to lose sleep over this. Our
Indirect Tax Team is here to help you.

2. Recognition
The Indirect Tax team of Deloitte Indonesia received an award from
the International Tax Review as Indonesia Indirect Tax Firm of the Year (2008).
Indirect Tax Services Group
Charles Setia Oetomo
Partner
coetomo@deloitte.com
Phone : +62 21 2312879 ext. 6309
Jeklira Tampubolon
Senior Manager
jtampubolon@deloitte.com
Phone : +62 21 2312879 ext. 6018
Deloitte Tax Solutions
The Plaza Office Tower, 32nd Floor
Jl. M.H. Thamrin Kav 28-30
Jakarta 10350
Indonesia
Tel: +62 21 2992 3100
Fax: +62 21 2992 8303
email : iddttl@deloitte.com
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