Yes, gold purchases on KoinGold will be subject to VAT (the gold price displayed in the application includes VAT).

As of April 1, 2022, the Indonesian government began implementing the Law on the Harmonization of Tax Regulations (UU HPP) No. 7 of 2021 with the aim of encouraging economic recovery and national development.

This will affect several tax regulations which then affect the price of digital gold.

Here are the details:

1. HPP Law No. 7 of 2021 Article 4A states that gold that is not subject to tax is gold that is included in the category of state foreign exchange reserves. Because digital gold is not a state foreign exchange reserve, as of April 1, 2022, digital gold will be subject to VAT.
2. HPP Law No. 7 of 2021 Article 7 states that there is a change in the rate of Value Added Tax (VAT) which applies as of April 1, 2022 to 11% from the original 10%.

The implementation of Article 4A of the HPP Law will have an impact on the imposition of taxes on buying digital gold transactions, including digital gold that KoinWorks offers through KoinGold.

So, as of April 1, 2022, the KoinGold gold price displayed in the KoinWorks application is the gold price which includes 11% VAT.

However, KoinWorks users need not worry. KoinGold still offers the cheapest digital gold price (including tax) in Indonesia, you know!