PPN VAT Indonesia 2026 | 12% Rate, Registration & e-Faktur

Q: What is the VAT rate in Indonesia for 2026?

The standard PPN rate is 11% (since April 2022). A planned increase to 12% has been discussed but not yet implemented as of early 2026. Certain goods and services are exempt or zero-rated, including basic necessities, education, and exports.

Q: When must a business register for PPN (VAT) in Indonesia?

Registration as PKP (Pengusaha Kena Pajak) is mandatory when annual gross revenue exceeds IDR 4.8 billion. Businesses can voluntarily register below this threshold. PKP registration requires issuing faktur pajak for all taxable transactions.

Q: How do input tax credits work for Indonesian PPN?

Input PPN paid on business purchases can be credited against output PPN collected from sales. Net PPN (output minus input) is remitted monthly. If input exceeds output, you can carry forward the credit or claim a refund (which typically triggers an audit).

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PPN VAT Indonesia 2026 | 12% Rate, Registration & e-Faktur