Indonesia VAT rate
Indonesia's value added tax. The STATUTORY rate is 12%, but a Ministry of Finance regulation reduces the taxable base for all non-luxury supplies so that the effective burden remains 11%.
| Current value | 12 percent |
|---|---|
| In force from | 2025-01-01 |
| Official source | Undang-Undang No. 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan (UU HPP), Pasal 7(1)(b), amending UU No. 8 Tahun 1983 tentang PPN; implemented by Peraturan Menteri Keuangan (PMK) No. 131 Tahun 2024, with the nilai-lain/besaran-tertentu rules consolidated by PMK No. 11 Tahun 2025 |
| Last verified | 2026-07-20 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
FLAGSHIP HONESTY CASE — the headline number and the number a taxpayer actually pays diverge. UU HPP Pasal 7(1)(b) mandated that the PPN rate rise from 11% to 12% no later than 1 January 2025, and it legally DID: 12% is the statutory rate in force. However, PMK 131/2024 (signed 31 December 2024, effective 1 January 2025) exercises the Minister's power under Pasal 8A jo. Pasal 16G UU PPN to prescribe a 'Dasar Pengenaan Pajak berupa nilai lain' (other-value tax base) equal to 11/12 of the sales price, import value or replacement value for ALL taxable goods and services NOT classified as luxury. Because 12% x (11/12) = 11%, the effective PPN rate on non-luxury supplies is exactly 11% — unchanged from 2022. The full 12% applies to the undiluted base only for goods subject to Sales Tax on Luxury Goods (PPnBM): specified motor vehicles, aircraft, yachts/cruisers and high-end residential units. Article 5 of PMK 131/2024 set a one-month transition for retail sales to final consumers, with the 12% luxury treatment biting from 1 February 2025 (11/12 base applied 1-31 January 2025). PMK No. 11 Tahun 2025 (effective 4 February 2025) subsequently consolidated the general 'nilai lain' and 'besaran tertentu' PPN rules; it does not disturb the 11/12 mechanism. Status re-confirmed for 2026: DJP and Ministry of Finance statements reported by DDTC (2026) confirm 12% continues to apply only to luxury goods while non-luxury supplies remain at an effective 11%. We serve the STATUTORY 12 per the convention that the nominal legal rate is the served value, with the effective-11 mechanism documented here (same treatment as Bolivia's 13% 'por dentro' = 14.94% effective). Practical implication for API consumers: for ordinary commercial goods and services in Indonesia, apply 11%, not 12%. RISK: the 11/12 base rests on ministerial regulation, not statute, and can be withdrawn by a subsequent PMK without any change to the 12% statutory rate. Also note the Indonesian VAT registration threshold (Pengusaha Kena Pajak) of IDR 4.8 billion annual turnover, and a 0% rate on exports of goods and specified services. Primary instrument is Bahasa Indonesia only; DJP's explanatory notes are at pajak.go.id/en/node/113453 (PMK 131/2024) and pajak.go.id/en/node/114038 (PMK 11/2025) — English URL paths, Indonesian body text.
Earlier values
| From | Value | Source |
|---|---|---|
| 1984-04-01 | 10 | UU No. 8 Tahun 1983 tentang Pajak Pertambahan Nilai Barang d |
| 2022-04-01 | 11 | UU No. 7 Tahun 2021 (UU HPP), Pasal 7(1)(a) |
Get it programmatically
curl https://asiaref.dev/v1/id/vat
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/id/vat/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/id/vatOther Indonesia series: policy interest rate · minimum wage · public holidays · inflation rate (CPI) · corporate tax rate · income tax rates