Taxable Goods (BKP)
Taxable Goods (BKP) are goods subject to VAT under the PPN Law. Governed by Article 1 paragraph 3 and Article 4A of the VAT Law (No. 8/1983 as amended by No. 7/2021). As a rule, all goods are BKP unless explicitly exempted by law. Exempted goods include: raw minerals extracted directly from the source, basic food staples (rice, corn, sago, soybeans, sugar, vegetables, and fruit), and food/beverages served at hotels, restaurants, and eateries (subject to regional tax instead).
This article is for education, not tax advice.
Example
Purchasing a smartphone is a BKP transaction, subject to 11% VAT. However, buying rice at a traditional market is not BKP and is VAT-exempt.
Source: Article 1 paragraph 3 and Article 4A UU PPN No. 8/1983 jo. No. 7/2021