- Minister of Finance issued Regulation No. 131 of 2024 on VAT treatment in Indonesia effective January 1, 2025
- Director General of Taxation issued technical guidance on VAT invoice preparation effective January 3, 2025
- VAT calculated based on selling price or import value for luxury goods, and Other Value (11/12 of selling price) for non-luxury goods
- Transition period from January 1-31, 2025 where tax base uses Other Value, then full selling price from February 1, 2025 onwards
- Exceptions for certain VAT Entrepreneurs currently using Other Value as tax base or specific VAT rates
- VAT rate will be 12% in 2025, but effective VAT impact for non-luxury goods should remain at 11% using Other Value calculation.
Source: assets.kpmg.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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