VAT / PPN in Indonesia
Understand Indonesia's Value Added Tax (PPN) system, including the 11% standard rate, registration requirements, filing obligations, and how to stay compliant with E-Faktur.
Get VAT AssistanceQuick Facts
Indonesia VAT Rates 2025
Current VAT rates applicable to different types of goods and services
Standard Rate
Most goods and services
April 2022Planned Rate
Future increase (announced)
January 2025Export
Export of goods and services
CurrentExempt
Basic necessities, education, health
CurrentVAT Registration Requirements
What you need to register as a PKP (VAT-registered business) in Indonesia
Valid Tax Identification Number
Business Identification Number from OSS
IDR 4.8 billion annual gross turnover
Company deed, domicile letter
Corporate bank account details
VAT Filing Obligations
Ongoing compliance requirements for VAT-registered businesses
Monthly VAT Return
Report all output and input VAT transactions
Deadline: 20th of following monthVAT Payment
Pay net VAT liability (output minus input)
Deadline: Before filing returnE-Faktur
Issue electronic tax invoices for all taxable supplies
Deadline: Upon transactionE-Faktur Compliance
All VAT-registered businesses must use the E-Faktur system for issuing and reporting tax invoices. Failure to comply can result in penalties and the inability to claim input VAT credits. Ensure your accounting system is integrated with E-Faktur.
Frequently Asked Questions
Common questions about VAT/PPN in Indonesia
What is PPN (VAT) in Indonesia?
PPN (Pajak Pertambahan Nilai) is the Indonesian Value Added Tax, levied on most goods and services at each stage of production and distribution. The current standard rate is 11%, increased from 10% in April 2022.
When must a business register for VAT?
Businesses must register as PKP (Pengusaha Kena Pajak/VAT-registered entrepreneur) when annual gross turnover exceeds IDR 4.8 billion. Voluntary registration is possible below this threshold.
What is E-Faktur?
E-Faktur is the mandatory electronic tax invoice system in Indonesia. All VAT-registered businesses must use E-Faktur to issue and report tax invoices to the tax authority.
Can foreign companies register for VAT in Indonesia?
Foreign companies operating through a PT PMA (foreign-owned company) can register for VAT once they have NPWP and meet the turnover threshold or choose voluntary registration.
What happens if VAT returns are filed late?
Late filing incurs a penalty of IDR 500,000 per late return. Late payment results in interest charges of 2% per month on the outstanding VAT liability.
Need Help with VAT Compliance?
Our team can handle VAT registration, E-Faktur setup, monthly filing, and ensure your business stays compliant with Indonesian tax regulations.
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