Indonesia VAT Calculator
How Much Is VAT in Indonesia?
The standard VAT rate in Indonesia is 12% in 2026. Other rates: 11% — Most goods and services: 12% applied to a tax base (DPP) of 11/12 of the price under PMK 131/2024; 0% — Exports of goods and certain exported services. Locally the tax is called Pajak Pertambahan Nilai (PPN, Value Added Tax). Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate Indonesia VAT
To add 11% VAT to a net (tax-exclusive) price, multiply it by 1.11. To remove VAT from a gross (tax-inclusive) price, divide it by 1.11.
- Add VAT: IDR 100 net × 1.11 = IDR 111 gross (that is IDR 11 of VAT)
- Remove VAT: IDR 111 gross ÷ 1.11 = IDR 100 net (that is IDR 11 of VAT)
Use the Indonesia VAT calculator above for any amount, or compare Indonesia with every other country in our VAT rates by country table.
Indonesia VAT Rates Overview
Every VAT rate currently in force in Indonesia
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Statutory rate on luxury goods | 12% | Goods subject to luxury-goods sales tax (PPnBM), e.g. luxury cars, private jets, yachts, high-value residences, charged on the full price |
| Effective rate on other goods and services | 11% | Most goods and services: 12% applied to a tax base (DPP) of 11/12 of the price under PMK 131/2024 |
| Zero rate | 0% | Exports of goods and certain exported services |
| Final/deemed rates | Various | Certain sectors use simplified deemed VAT on a fraction of the price (e.g. some used cars, agricultural products, travel agency services) |
VAT History and Local Rules in Indonesia
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2025: Statutory rate raised to 12% on 1 January 2025, but applied on 11/12 of the price for non-luxury goods, keeping an 11% effective rate
- 2025: Coretax system launched for VAT invoicing, filing and payment
- 2022: Rate raised from 10% to 11% on 1 April 2022 under the Harmonised Tax Law (HPP)
- 2020: VAT on foreign digital products and services (PMSE) from 1 July 2020
- 1985: VAT introduced at 10% on 1 April 1985, replacing sales tax
Is the VAT rate the same everywhere in Indonesia?
The same rate applies throughout Indonesia. Free trade zones such as Batam, Bintan and Karimun, and Special Economic Zones (KEK), receive VAT not-collected facilities on qualifying deliveries.
Good to know
Indonesia's headline VAT rate is 12%, but for almost all goods and services the tax is calculated on 11/12 of the price, so buyers pay an effective 11%. Only luxury goods subject to PPnBM bear the full 12%.
VAT is also charged on self-construction of buildings (above a size threshold) and many sectors use deemed or final VAT at a fraction of the rate.
The Coretax administration system replaced the old e-Faktur and DJP Online platforms in 2025, and 16-digit NPWP numbers replaced the older 15-digit format.
Zero-Rated and Exempt Supplies in Indonesia
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of tangible goods
- Exports of intangible goods
- Exports of certain services (e.g. toll manufacturing, certain services used abroad)
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Basic necessities such as rice, corn, soybeans, eggs, fresh meat, fish, vegetables and fruit (VAT not collected)
- Medical and healthcare services
- Education services
- Financial and insurance services
- Public transport and social services
- Drinking water and electricity for most households
Indonesia VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Indonesia.
| Local name | Pajak Pertambahan Nilai (PPN, Value Added Tax) |
|---|---|
| VAT number format | NPWP taxpayer number, now 16 digits (national ID number for residents) |
| Registration threshold | Businesses must register as a VAT-able entrepreneur (PKP) when annual turnover exceeds IDR 4.8 billion |
| Non-resident businesses | Foreign digital suppliers are appointed by the tax office to collect VAT once Indonesian sales exceed IDR 600 million a year or 12,000 users a year; otherwise B2B imported services are self-assessed by the recipient |
| Filing frequency | Monthly VAT return |
| Filing and payment deadline | End of the following month (payment also due before filing) |
| E-invoicing / reporting | Mandatory e-Faktur tax invoices, issued through the Coretax system since 2025 |
| Tax authority | Directorate General of Taxes (Direktorat Jenderal Pajak, DJP) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Directorate General of Taxes (Direktorat Jenderal Pajak, DJP) before relying on them.
Cross-Border Sales and Refunds in Indonesia
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign sellers of digital goods and services (PMSE) appointed as VAT collectors must charge VAT to Indonesian customers, effectively 11% using the 11/12 tax base, and report quarterly.
Tourist VAT refunds: Yes: foreign tourists can reclaim VAT on goods bought at participating stores and taken out through designated international airports, subject to minimum purchase amounts.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇦🇺 Australia
Standard Rate: 10%
🇳🇿 New Zealand
Standard Rate: 15%
🇯🇵 Japan
Standard Rate: 10%
🇰🇷 South Korea
Standard Rate: 10%
Frequently Asked Questions
Common questions about VAT in Indonesia
What is the current VAT rate in Indonesia?
The standard VAT rate in Indonesia is 12% in 2026. Other rates in force: 11% (effective rate on other goods and services), 0% (zero rate), Various (final/deemed rates). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Indonesia?
To add 12% VAT, multiply the net price by 1.12. To remove it from a VAT-inclusive price, divide by 1.12; the difference is the VAT. The calculator at the top of this page does both.
Is Indonesia's VAT 11% or 12%?
Both, in effect. The statutory rate has been 12% since 1 January 2025, but for non-luxury goods and services VAT is calculated on 11/12 of the price, giving an effective 11%. Luxury goods subject to PPnBM pay the full 12%.
What is the VAT registration threshold in Indonesia?
A business must register as a PKP (VAT-able entrepreneur) once annual turnover exceeds IDR 4.8 billion. Smaller businesses may register voluntarily.
Can tourists get a VAT refund in Indonesia?
Yes. Foreign tourists can claim VAT back on goods bought from participating shops and carried out through designated international airports such as Bali and Jakarta, provided minimum spending rules are met.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.