Indonesia — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
Indonesia's general VAT rate is 10%, with other rates including 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the The Directorate General of Taxes (http://www.pajak.go.id) in Jakarta.
Indonesia has the following special VAT rates:
8.4% reduced VAT rate on: cigarette supplies
4% reduced VAT rate on: in-house construction.
Indonesia's consumption tax is called the Value-added tax (VAT), locally known as Pajak Pertambahan Nilai (PPN), which was introduced in January 1984.
Indonesia VAT rates for 2018
- Zero-rated and exempt
Indonesia VAT number format
Businesses in Indonesia that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the The Directorate General of Taxes, and will follow a certain format. The VAT number format is 220.127.116.11-111.111.
Indonesia VAT return periods
Businesses in Indonesia that are required to collect tax from consumers must file regular tax returns with the The Directorate General of Taxes in Jakarta. Indonesia's VAT return periods are:
Indonesia Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Indonesia are required to start collecting and remitting tax.
- Registration for small entrepreneurs
- IDR4.8 billion of supplies of goods or services
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Indonesia are not required to collect taxes from the consumer.
Indonesia VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Indonesia VAT refund program, more info can be obtained from the The Directorate General of Taxes.
Indonesia Tax Sources & Citations
- EN: Indonesia Value Added Tax
- RU: НДС
- CN: 增值税
- Indonesia The Directorate General of Taxes (http://www.pajak.go.id)
- Ernst & Young global VAT tax study, Indonesia (updated 2018)
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