This guide provides an overview of VAT in Indonesia, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Indonesia.
Indonesia’s VAT rate was raised to 11% in 2022 and is set to climb to 12% in 2025.
No. Indonesia conducts detailed tax audits before granting refunds, making the process lengthy and documentation-heavy.
No. All VAT invoices must be created through e-Faktur, digitally signed, and reported electronically.
PPN returns must typically be filed by the end of the following month after the tax period.
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