VAT Compliance in Indonesia: Rates, Invoices and Input VAT
VAT compliance in Indonesia for a registered company: the rate on a price, when an e-Faktur is due, claiming input VAT and the monthly return.
References (8)
- The VAT Law (UU No. 8 Tahun 1983, as amended by UU No. 7 Tahun 2021, with its VAT chapter in force 1 April 2022) sets the rate, what sits outside VAT, the crediting rules, refunds, and exempt and not-collected supplies in Articles 4A, 7, 9 and 16B.
- When a tax invoice is due and what it must show is set by Article 13 of the VAT Law, as amended by UU No. 6 Tahun 2023, in force 31 March 2023.
- PMK No. 131 Tahun 2024, in force 1 January 2025, sets the 11/12 tax base in Article 3 and the full-price base for luxury goods in Article 2.
- Crediting and tax invoices are governed by PMK No. 81 Tahun 2024, in force 1 January 2025, Articles 375 to 391, and exported services by its Articles 280 and 282.
- Payment and filing deadlines, and their move to the next working day, are in the same PMK No. 81 Tahun 2024, Articles 94(3)(e), 100, 171(13) and (17), and 173.
- Uploading and approving an e-Faktur by the 20th of the following month is required by PER-11/PJ/2025, in force 22 May 2025, Article 44.
- Preliminary refunds have been governed by PMK No. 28 Tahun 2026 since 1 May 2026, replacing PMK No. 39/PMK.03/2018.
- The late-filing fine and the 12-month refund decision are set by the General Tax Law (KUP), Articles 7(1) and 17B(1).
VAT compliance in Indonesia is a monthly routine for a company registered for value added tax, a Pengusaha Kena Pajak (PKP).
It charges VAT on each sale and issues an e-Faktur, the electronic tax invoice. It claims back the VAT it paid on purchases, known as input VAT. Then it pays the balance and files a return by the end of the following month (Minister of Finance Regulation, PMK 81/2024, Articles 94(3)(e) and 171(13)).
Getting registered is covered in our guide to VAT registration in Indonesia. This article is about what comes after.
The rate, and what it comes to on a price
The VAT rate is 12% (VAT Law, Article 7(1), as amended by UU 7/2021). For almost everything it is charged on a tax base of 11/12 of the price, which comes to 11% of the price. Only luxury goods that also carry luxury-goods sales tax (PPnBM, Pajak Penjualan atas Barang Mewah) are taxed on the full price (PMK 131/2024, Articles 2 and 3).
| Tax base | VAT on the price | |
|---|---|---|
| Goods or services | 11⁄12 of the price | 11% of the price |
| Luxury goods (PPnBM) | the full price | 12% of the price |
| Export | the full price | nothing |
A few supplies use a tax base of their own or a fixed amount instead (PMK 131/2024, Article 4). Exports are charged at 0%. A service sold abroad qualifies only if it is on the Minister of Finance’s list, and only with a written contract and proof of payment; otherwise it is treated as a sale inside Indonesia (PMK 81/2024, Articles 280 and 282). We advise exporters on whether a service qualifies.
Zero-rated, not collected or exempt: what you can still claim
Three kinds of sale show no VAT on the invoice, and they look alike. They differ on the point that costs money: whether the seller can still claim the input VAT on what it bought to make them.
| VAT on the sale | Input VAT on purchases | Source | |
|---|---|---|---|
| Export (0%) | Charged at 0% | Can be claimed | VAT Law, Article 7(2) |
| Not collected | None collected | Can be claimed | VAT Law, Article 16B(2) |
| Exempt | None charged | Cannot be claimed | VAT Law, Article 16B(3) |
A zero rate is not an exemption, which is why an exporter keeps its claim. Which goods and services are exempt, and which have their VAT not collected, is set by Government Regulation under Article 16B(1) of the VAT Law, so the answer depends on exactly what the company sells.
A short list sits outside VAT altogether. It is mainly restaurant meals, hotel rooms, parking, entertainment and catering, which the regions tax instead, together with money, gold bullion for the central bank’s reserves, securities, religious services and core government services (VAT Law, Article 4A, as amended by UU 7/2021).
One invoice, from sale to monthly return
Every e-Faktur is made in the e-Faktur module of the taxpayer portal, or an application from a provider the Directorate General of Taxes (DGT) has appointed (PER-11/PJ/2025, Articles 40–41). The serial number is assigned when it is uploaded and approved (Article 43).
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Make the e-Faktur
On delivery, or on payment if that comes first (VAT Law, Article 13(1a)).
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Get it approved
Upload it for the tax office’s approval (PER-11/PJ/2025, Article 44).
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Pay, then file
The return is due even in a month with nothing to report (PMK 81/2024, Articles 94 and 171).
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Last month to claim
The buyer’s final chance to claim the input VAT (VAT Law, Article 9(9)).
When the month-end date falls on a weekend or public holiday, both the payment and the return move to the next working day (PMK 81/2024, Articles 100 and 173). The date is on our Indonesia compliance calendar.
Sales to the same buyer in one calendar month can go on a single combined invoice, made by the end of that month (VAT Law, Article 13(2)–(2a); PMK 81/2024, Article 383). For a buyer that is an Indonesian company, the invoice carries its name, address and tax ID (PMK 81/2024, Article 385(1)). How the e-Faktur module fits into the rest of the tax office’s system is covered in our guide to Coretax for companies.
Where input VAT gets lost
Input VAT on purchases not directly related to the business cannot be claimed either (VAT Law, Article 9(8)(b)). We check suppliers’ invoices before input VAT is claimed.
When input VAT is more than output VAT
In a month when the input VAT is larger than the VAT charged on sales, the difference carries forward to the next month. A refund can be requested at the end of the book year, or every month by exporters, suppliers to VAT collectors and suppliers whose VAT is not collected (VAT Law, Article 9(4)–(4b)).
An ordinary refund request is decided within 12 months (General Tax Law, or KUP, Article 17B(1)). Some businesses qualify for a faster preliminary refund under PMK 28/2026, in force since 1 May 2026. We prepare VAT refund requests; support through an audit that can follow is a separate fee.
What VAT compliance in Indonesia means for you
Once the company is registered, the same few steps repeat every month: an approved invoice for each sale, a check on each supplier’s invoice, and a return. A late return carries a fixed charge of IDR 500,000 (KUP, Article 7(1)). PMK 81/2024, which sets the monthly deadlines, is published in the Audit Board’s legal database.
VAT compliance in Indonesia is a separate engagement within our corporate tax services. Depending on what is agreed, we issue the tax invoices or check the ones you issue, and file the monthly VAT return, working from books that our bookkeeping and accounting services can keep. To work out the VAT on a single price, use the VAT calculator.