VAT on Electric Battery-Based Vehicles Covered by the Government for the Fiscal Year 2024

The government acknowledges the need for support in promoting the use of electric energy and public interest in battery-based electric motor vehicles. Therefore, they have implemented fiscal incentive policies in 2023. Through the Ministry of Finance Regulation, the government regulates the exemption of value-added tax for certain electric motor vehicles.

In 2024, the government plans to continue this policy by providing similar facilities. The consideration is to support the battery-based electric motor vehicle program. Therefore, a new Ministry of Finance Regulation will be established to regulate the value-added tax on the transfer of certain electric motor vehicles borne by the government in the fiscal year 2024.

The government will bear the Value Added Tax due on the transfer of Certain Battery-Based Electric Motor Vehicles Four-Wheeled and/or Certain Battery-Based Electric Motor Vehicles Buses to buyers. The transfer to buyers is intended for registration as new motor vehicles, in accordance with applicable laws and regulations.

The required TKDN value criteria for Certain Battery-Based Electric Motor Vehicles (BEV) Four-Wheeled and BEV Buses are as follows:
- For Certain Battery-Based Electric Motor Vehicles Four-Wheeled, the minimum TKDN value must reach 40%.
- For Certain Battery-Based Electric Motor Vehicles Buses, the minimum TKDN value must also reach 40%.
- For Certain Battery-Based Electric Motor Vehicles Buses, there is a specific range where the minimum TKDN value can be, namely between 20% and less than 40%.

BEV that meet these TKDN value criteria will be determined by the minister responsible for industrial governance affairs.

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