- Indonesia increased its VAT rate to 12% from 11% on January 1, 2025.
- The VAT imposition base was adjusted to ease the financial burden on consumers.
- This adjustment did not apply to businesses using the special VAT imposition base or final VAT mechanism.
- To rectify this, the Ministry of Finance issued Regulation Number 11 of 2025, adjusting the special VAT imposition base and final VAT mechanism.
- This regulation amended several existing regulations.
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.
Latest Posts in "Indonesia"
- Indonesia to Launch AI System for Real-Time Customs Oversight and Revenue Enhancement
- Indonesia Extends Property VAT Incentive Until 2027 to Boost Housing Market and Demand
- Jakarta Considers VAT Cut to Stimulate Consumption Amid Falling Tax Revenue
- Government Considers VAT Rate Cut to Stimulate Consumer Spending Amid Economic Slowdown
- Indonesia Updates Digital Tax Rules for E-Commerce Sector













