Government to Lower Gold Purity Threshold for VAT Exemption

JAKARTA, DDTCNews - A revision to the VAT facility provisions on gold is among the economic stimulus measures the government will introduce next year.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that going forward, a VAT exemption will be granted on the supply of gold with a purity of 99.9%.

"VAT exemption on gold with a purity of 99.9%," said Airlangga, as quoted on Friday (6/11/2026).

The incentive included in the 2027 stimulus package is expected to benefit players in the jewellery industry as well as consumers of precious metals.

Under the currently applicable provisions, namely Government Regulation (Gov. Reg.) 49/2022, the non-collected VAT facility is granted for gold with a purity of 99.99%.

Accordingly, an adjustment to the provisions governing that facility is required. "This is a new standard; previously it was 99.99%. As such, this represents a new policy," Airlangga added.

Gold eligible for the non-collected VAT facility comprises gold bullion with a purity of 99.99%, as evidenced by a certificate, including gold bullion whose ownership records are maintained electronically.

Under the above regulation, gold bullion with a purity lower than 99.99%, as referred to in Gov. Reg. 49/2022, constitutes taxable goods subject to VAT collected pursuant to the general provisions. (rig)