Indonesia VAT Rates 2026
Indonesia levies Value Added Tax as PPN (Pajak Pertambahan Nilai). The standard rate is 11%, applied to most goods and services. Indonesia applies a single flat rate with no reduced rates.
Rate update
The statutory PPN rate became 12% in January 2025, but a reduced tax base (11/12 of the selling price) keeps the effective rate at 11% for all non-luxury goods and services. Only luxury goods bear the full 12%.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 11% | Most goods and services |
| Zero-rated | 0% | Basic necessities: rice, corn, sago, soybeans, salt, meat, eggs, milk, fruit, vegetables |
Registration and filing
| Registration threshold | IDR 4,800,000,000IDR 4.8 billion annual turnover (~USD 295,000) for PKP status |
| Tax authority | Direktorat Jenderal Pajak (DJP) |
| Filing frequency | Monthly returns, due by the end of the following month |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/ID endpoint to get Indonesia data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/ID
# No authentication required for rate lookups
# Response:
# { "country_code": "ID", "tax_type": "vat",
# "standard_rate": 11, "reduced_rates": [0],
# "currency": "IDR", "last_updated": "2025-01-01" }Applying the correct rate in code
For B2B sales to Indonesia, validate the customer's NPWP first — a verified registration is typically required for correct invoicing and zero-rated exports. For B2C, charge the Indonesia VAT rate where registration rules require it.
// 1. Validate the customer's Indonesia tax ID
const check = await fetch(
'http://localhost:3000/api/v1/validate/ID/CUSTOMER_TAX_ID',
{ headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());
// 2. Fetch current Indonesia VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/ID').then(r => r.json());
// → { standard_rate: 11, reduced_rates: [0] }
// 3. Apply the correct treatment for your supply
applyRate(check.valid && isB2BExport ? 0 : rates.standard_rate);About Indonesia VAT
Indonesia's 2025 VAT change is a study in political compromise: the statutory PPN rate rose to 12%, but a last-minute regulation set the tax base at 11/12 of the price for everything except luxury goods, leaving the effective rate at 11% for ordinary purchases. The PKP registration threshold of IDR 4.8 billion is among the highest in the world relative to income. Foreign digital platforms have collected PPN on sales to Indonesian consumers since 2020.
VAT in Indonesia is administered by the Direktorat Jenderal Pajak (DJP). Before applying any zero-rate or exemption to a Indonesia business customer, validate their registration first.
Sources: PwC Worldwide Tax Summaries · DJP (accessed Jun 2026)
Rate history
- 2022PPN raised from 10% to 11%
- 2025Statutory rate set at 12%, but an 11/12 tax-base adjustment keeps the effective rate at 11% for non-luxury goods
Frequently asked questions
What is the VAT rate in Indonesia in 2026?
Effectively 11% on most goods and services (statutory 12% applied to an 11/12 base); only luxury goods bear the full 12%.
Who must register for Indonesian PPN?
Businesses with turnover above IDR 4.8 billion must become PKP (taxable entrepreneurs); smaller businesses may register voluntarily.
Related concepts and guides: