VAT Registration in Indonesia

Updated on Monday 08th August 2022

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The taxation system in Indonesia is made up of several levies which apply to both companies and individuals. If companies are levied the corporate tax and individuals the personal income tax, which are direct taxes, there are also indirect levies among which the value added tax (VAT) or the goods and services tax (GST) is the most important one. The VAT applies to certain goods and services sold in Indonesia.

Our Indonesia company formation consultants can offer more information on how the VAT is applied.
 
 Quick Facts  
VAT registration services Yes 

Standard VAT rate

11% 

Lower rates

0%

Who needs VAT registration Companies delivering services or goods exceeding IDR 4.8 billion in one fiscal year
Time frame for registration

2 weeks

VAT for real estate transactions

All or partly exempt on the sale of certain residential property

Exemptions available

Companies in free trade zones are not subject to VAT registration

Period for filing

Monthly VAT return filing

VAT returns support Yes, upon request from our team
VAT refund  It can be claimed at the end of the fiscal year
Local tax agent required

Recommended

Who collects the VAT

Directorate General of Taxes

Documents for VAT registration

- filled in application form;

- the company's registration documents;

- documents for the company's director

VAT number format

15 digits

VAT de-registration situations

Cesation of activities


If you are interested in other matters, for example, immigration to Indonesia, we can also provide you with details.
 

Goods and services taxable under the GST in Indonesia

Companies or sole traders in Indonesia must levy the value added tax on the following:

-          the delivery of goods;
-          the delivery of services;
-          the import of certain taxable goods;
-          the export of certain taxable goods or services;
-          the consumption and use of goods, respectively services from abroad.

The standard VAT rate in Indonesia is 10%, however, there are also certain services and goods which are exempt from the VAT or are applied at lower rates. Also, the VAT can be increased or decreased to 15%, respectively to 5% by the government. Investors who are interested in immigration to Indonesia for the purpose of starting a business should be aware of these rates.

It should be noted that Indonesia levies a separate GST on the sale of luxury items which ranges between 10% and 50%.

Our company registration agents in Indonesia can offer more information on the VAT rates.

Our immigration lawyers in Indonesia can give you details on the tax rates applicable to individuals.
 

Goods and services exempt from the VAT in Indonesia

Indonesian companies are required to supply the following VAT-exempt goods and services:

-          mineral and natural resources;
-          commodities, such as basic food products;
-          food and drinks supplied by hotels and restaurants;
-          money and securities;
-          educational services;
-          financial services;
-          insurance services;
-          healthcare services;
-          touristic services.

There are also other services that are exempt from the VAT.

In order to levy the GST, Indonesian companies must register for VAT and report the liabilities resulting from the sale of taxable goods and services on a monthly basis. Also, at the end of every financial year, companies are entitled to file for VAT refunds with the tax authorities in Indonesia.

For full information on how to value added tax is applied in Indonesia, please contact us. You can also rely on our company formation advisors if you want to start a business in Indonesia.

Our team of specialized immigration lawyers in Indonesia can also answer questions about this particular topic.