Sambas Tax Office Educates on Self‑Built Property VAT for

The Sambas Tax Service Office (KP2KP) conducted on‑site verification on 29 October 2025 of five self‑built structures larger than 200 square metres in Sambas Regency. The outreach aimed to clarify the application of Value‑Added Tax (VAT) on Self‑Built Activities (KMS) as stipulated in Minister of Finance Regulation No 61/2022.

Under the regulation, VAT KMS equals 20 % of the standard VAT rate multiplied by construction costs, excluding land acquisition costs, and becomes due when construction starts. Taxable entrepreneurs (PKP) must report the VAT in their periodic VAT returns, while non‑taxable entrepreneurs are considered compliant once the tax is paid, reporting to either the Singkawang Tax Office or the Sambas KP2KP.

The briefing also distinguished VAT KMS from the 11 % VAT on construction services, which is the contractor’s responsibility and may vary by business unit certification. Clarifying reporting obligations is expected to improve tax compliance for self‑construction projects and bolster state revenue.