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Indonesia VAT calculator (PPN)

Indonesia’s VAT (PPN) rate is 12%, but for everything except luxury goods subject to the luxury-goods sales tax it is charged on a tax base of 11/12 of the price, so it works out at 11%; luxury goods pay 12% on the full price and exports 0%.

Worked example · PPN charged by the seller

With Amount of 1,000,000, this model computes PPN charged by the seller of 110,000 IDR. See the full working.

✓ Verified against 7 self-test cases Updated for 2026 · sources checked 2026-10-31

How PPN (VAT) in Indonesia is calculated

Article 7 of the **VAT Law**, as amended by UU 7/2021 (HPP), raised PPN to **12%** from 1 January 2025 and sets **0%** for exports of goods and services. **PMK 131/2024** then split the 12%: luxury goods subject to PPnBM, such as cars, pay 12% on the price, and every other supply pays 12% on a tax base (DPP) of **11/12** of the price.

So on Rp1,000,000 of ordinary goods the base is Rp916,666.67 and PPN **Rp110,000** — the same as 11% of the price. To take PPN out of a gross amount, divide by 1.11 (1.12 for luxury goods).

Services and intangibles used in Indonesia but supplied from abroad are self-assessed by the buyer on the same base. A business must register as a PKP once turnover passes **Rp4.8 billion** a year (PMK 197/2013). Exempt supplies and set-amount (besaran tertentu) schemes are not covered. Estimate, not tax advice.

Worked example

ShowHide the full working: 5 inputs, 9 computed steps
Rp1,000,000 of ordinary goods: base Rp916,666.67, PPN Rp110,000
Inputs
Amount (IDR)1,000,000
This amount isNet — add PPN
What is being soldGoods and services — 12% on 11/12 of the price (11%)
Service or intangible from abroad — the Indonesian buyer self-assesses the PPNno
Annual turnover (IDR)0
Computed by the engine
Rate0.12
Tax Base Share0.9166666666666666
Effective Rate ✓ pinned0.11
Net (price)1,000,000 IDR
Tax base (DPP) ✓ pinned916,666.67 IDR
PPN charged by the seller ✓ pinned110,000 IDR
PPN self-assessed by the buyer0 IDR
Gross ✓ pinned1,110,000 IDR
Must Registerno

Every computed row comes from the engine, run on the inputs above. Rows marked ✓ pinned are also fixed by a published self-test, so a change to the model that moved them would fail its own tests.

Frequently asked questions

What is the VAT rate in Indonesia in 2026?

12%. Under PMK 131/2024 it is charged on 11/12 of the price for everything except luxury goods subject to PPnBM, so most supplies pay an effective 11%. Exports are 0%.

Why is PPN 11% on my invoice if the rate is 12%?

Because the tax base (DPP) is 11/12 of the price: 12% × 11/12 = 11%. Only luxury goods subject to the luxury-goods sales tax are taxed on the full price.

When must a business register for PPN?

When its turnover in a financial year exceeds Rp4.8 billion. Up to that it is a small business (pengusaha kecil) under PMK 197/2013, though it may choose to register.

Berapa PPN atas penjualan Rp1 juta?

Rp110.000: tarif 12% dikalikan DPP nilai lain 11/12 dari harga jual, yaitu Rp916.666,67.

Sources

Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 7 self-test cases; the sources support that the formula matches the rules.

Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 7 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.

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