Yes, purchasing gold in KoinGold will be subject to Value Added Tax (VAT) (the gold price displayed in the application already includes VAT).
As of April 1, 2022, the Indonesian government began implementing the Harmonization of Tax Regulation Law (UU HPP) No. 7 of 2021 with the aim of promoting economic recovery and national development.
This will affect certain tax regulations, which in turn will impact the price of digital gold.
Here are the details:
- UU HPP No. 7 of 2021 Article 4A states that gold exempted from tax is gold categorized as foreign exchange reserves of the state. Since digital gold is not considered a foreign exchange reserve, starting from April 1, 2022, digital gold will be subject to VAT.
- UU HPP No. 7 of 2021 Article 7 mentions a change in the Value Added Tax (VAT) rate effective from April 1, 2022, increasing from 10% to 11%.
The implementation of Article 4A of UU HPP will impact the taxation of digital gold purchase transactions, including the digital gold offered by KoinWorks through KoinGold.
Therefore, starting from April 1, 2022, the gold price displayed in the KoinWorks app for KoinGold will already include an 11% VAT.
However, KoinWorks users need not worry. KoinGold still offers the lowest-priced digital gold (including taxes) in Indonesia!