The Ministry of Finance has issued a regulation pertaining to tax underpayments and overpayments on supplies of certain fuel oil (Bahan Bakar Minyak/BBM). These provisions are outlined in the Minister of Finance Regulation No. 169/PMK.02/2021 concerning the Third Amendment to the Minister of Finance Regulation No. 130/PMK.02/2015 concerning Procedures for Budget Provision, Calculation, Payment and Accountability of Subsidy Funds for Certain Types of Fuel Oil (MoF Reg. 169/2021). Promulgated on 25 November 2021, this regulation came into effect thereafter.
 
This regulation has been issued to perfect the mechanism for the payment of subsidies for certain types of fuel, namely gas oil. As per Article 22 paragraph (1) of MoF Reg. 169/2021, in the event of VAT underpayments on supplies of kerosene by a business entity to the government that have been paid to the Directorate General of Taxes (DGT), the underpaid VAT shall be paid by the State General Treasurer Budget User Proxy (Kuasa Pengguna Anggaran Bendahara Umum Negara/KPA BUN) to the DGT as per applicable provisions.
 
The underpaid VAT may be paid insofar as it has been budgeted in the State Budget (Anggaran Pendapatan dan Belanja Negara/APBN)  and/or the Revised APBN. If the underpayment fund has not been budgeted in the current year, the fund may be proposed to be budgeted in the APBN and/or the Revised APBN for the following fiscal year.
 
However, in the event of VAT overpayment on supplies of kerosene by a business entity to the government that has been paid to the DGT, the overpayment must be transferred from the tax revenue account to the state treasury account. Overbooking is carried out as per statutory provisions using the account code 425915 concerning the recovery of subsidy expenditures for the previous fiscal year.