Indonesia VAT / Sales Tax

Detailed vat / sales tax rates and rules for Indonesia in 2026.

VAT / Sales TaxIDR

Indonesia's VAT rate increased to 12% effective January 2025, initially applied to luxury goods, with the standard rate for most goods and services following. The rate was previously 11% (increased from 10% in April 2022). Exempt supplies include basic necessities, healthcare, education, social services, and financial services. The government implemented a simplified 1-2% final VAT scheme for qualifying small businesses. Indonesia has extended VAT to digital services provided by foreign companies since 2020.

Standard Rate

12%

Registration Threshold

Annual turnover exceeding IDR 4.8 billion (businesses below this threshold may opt for the 0.5% final tax on gross turnover)

Reduced Rates

11% — Non-luxury goods and services (transitional rate)0% — Exports of goods and certain services

How Indonesia VAT / Sales Tax compares

Indonesia’s standard VAT / sales tax rate of 12% is the 132nd highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.