Navigating VAT Compliance for Foreign Businesses in Indonesia: Essential Guidelines and Requirements

• VAT applies to all individuals, organizations, or businesses in Indonesia
• Foreign companies selling goods or services in Indonesia must comply with local VAT requirements
• Foreign companies must register for VAT if providing digital products or services to local customers
• Registration threshold is IDR 4.8 billion annually
• Steps for VAT registration include appointing a local tax representative and submitting required documents
• Registered companies must charge VAT at 11% on sales to Indonesian consumers and file monthly VAT returns
• Companies can claim VAT refunds for input tax on business-related purchases
• Specific VAT requirements for foreign digital service providers in Indonesia
• Non-compliance may result in penalties or operational restrictions in Indonesia

Source: fiscal-requirements.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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