1st January VAT rise to 12% but only on luxury goods The Indonesian government has increased the Value Added Tax rate from 11% to 12% from a January 2025 on luxury goods only – applicable to certain goods and services. To support the less-well-off, the
Money transfer services via payment wallets do not enjoy Financial Services exemption. Also imposing VAT on crypto asset trading transactions Indonesia’s Finance Ministry has confirmed the financial tech companies offering digital wallet services will be subject to charging standard rated VAT. This will apply from
Appointed non-resident digital service providers help quadruple VAT receipts to over $270m Indonesia has added a further seven VAT collectors at the end of 2021 to the list of non-resident providers of digital services who must charge and remit tax on provision of electronic services
The Indonesian Directorate General of Taxes has added a further two foreign entities to the VAT on digital services Trading Through the Electronic System scheme. This takes the total to 83 non-resident providers of digital or e-services to Indonesian consumers. So far, the DG has
Indonesia introduced its e-invoicing regime, e-Factur, in July 2015, completing in 2016, for all VAT registered businesses. This includes a government clearance system and QR Code (Quick Response Code) requirement. Indonesia’s system is a process to generate a registered and approved PDF-invoice for issuance to
The Indonesian government has agreed with Parliament – voted on 7 October 2021 – a draft budget including a Value Added Tax standard rate increase from 10% to 11% from 1 April 2022. It will then rise to 12% by 2025. The House of Representatives
