At present, Value-Added-Tax (VAT) is charged in Indonesia at the standard rate of 10%. In Indonesia, VAT is locally known as Pertambahan Pajak Nilai (PPN). While VAT is levied on imports but exports, on the other hand, are exempted from VAT. Indonesia also has two reduced rates of VAT in addition to having a standard rate. They are 8.4% and 4%. Products such as cigarette supplies are charged VAT at a reduced rate of 8.4%, while the reduced rate of 4% is levied in-house.
Indonesia Vat Calculator
Calculating VAT Manually for Indonesia
Our online VAT calculator is fast and reliable in addition to being correct. It can be used to calculate the amount of VAT at the different rates at which it is charged in different countries. Furthermore, you can also use it to calculate the VAT Price at the standard rate and the reduced rates by just changing the rate of VAT in the calculator. On the other hand, VAT can also be calculated manually by using simple formulas for the addition and subtraction of VAT.
History of VAT in Indonesia:
Indonesia implemented VAT in 1984 to minimize the evasion of taxes by both the companies and individuals and create uniformity and transparency in the payment of taxes. At that time, a rate of 10% was set as the standard rate of VAT. However, the law also clarifies that depending on the government’s regulations, the status may change and may either reach a minimum rate of 5% or a maximum rate of 15%. The Indonesian VAT Law has remained the same ever since its enactment and is expected to maintain this consistency soon.
Goods and Services Exempted from VAT in Indonesia:
Indonesia has a very low VAT rate compared to other countries such as Greece, Italy, Hungary, etc. But it still not only has reduced rates of VAT but also has VAT exemptions. There are many products and services exempted from VAT in Indonesia, for instance:
- Accommodation Services
- Financial Services
- Educational Services
- Public Postal Services
- Insurance Services
- Religious Services
- Medical Services
- Social Services
- Public Transportation
- Domestic Energy
- Printed Books
- Agricultural Products
Also visit vat calculator Philippines.
Q: What is the VAT rate in Indonesia?
In Indonesia, you have to pay Value-Added-Tax (VAT) at the standard rate of 10%.
Q: Does Indonesia have GST?
Yes, Indonesia has Goods and Services Tax and is charged on most of the products and services at the standard rate of 10%. Although imports are subjected to VAT, exports are exempted from it.
Q: What is a PPh tax in Indonesia?
The local tax levied on the revenue that a tax resident who is foreign gains in Indonesia either as an organization or as an individual is called PPh 26.
Q: How do I pay taxes in Indonesia?
In Indonesia, the method of withholding by the Company’s Employer is used to pay Income Taxes. Then, every month, the tax amount withheld by the Company’s Employer is then remitted to the government body.
Q: Do people have to pay taxes on exports in Indonesia?
No, although imports are taxed, no VAT is levied on Exports.