- VAT rate in Indonesia increased to 12% starting 1 January 2025
- Regulation Number 1/PJ/2025 and Regulation Number 131 of 2024 implemented by Indonesia’s Directorate General of Taxes and the Minister of Finance respectively
- Previous VAT rate was 11% under the Law on Harmonization of Tax Regulations
- Existing regulations related to VAT invoices remain valid
- New VAT rate of 12% applies to imports and deliveries of taxable tangible luxury goods within the Indonesian customs area
- Special VAT imposition base used for nonluxury goods and services results in an effective VAT rate of 11%
- VAT for certain transactions calculated using a special base or under the final VAT mechanism remains unchanged
- List of taxable luxury goods defined in previous Ministry of Finance regulations
- Transitional measures include different VAT calculations for deliveries of luxury goods during January 2025
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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