Indonesian VAT Calculator
11% is the VAT (Goods and Services Tax) rate that is applied in Indonesia on Goods and Services. It was introduced in 1985, the value added tax also known as PPN (Pajak Pertambahan Nilai in Indonesia). VAT is levied on imports but exports, on the other hand, are exempted from VAT.
How to use the Indonesia VAT Calculator?
We’ve predefined a button, you’ve to put a value and press the button.
- The amount of VAT in “Add VAT” is the VAT inclusive price.
- The amount of VAT in “Subtract VAT” is the VAT exclusive price.
Also, visit New Zealand GST Calculator
How to calculate VAT Indonesia
- To add Tax in the amount here’s the formula:
- Tax Amount = ( Original Cost * VAT% ) / 100.
- Net Price = Original Cost + Tax Amount.
- To remove the Tax from amount:
- Tax Amount = Original Cost – ( Original Cost * ( 100 / ( 100 + VAT% ) ) ).
- Net Price = Original Cost – Tax Amount.
For example if the exclusive amount is IDR 10:
- (IDR10 * 11)/100 = IDR 1.10.
- (10+1.10) = IDR 11.10.
What is the rate of VAT in Indonesia?
- The standard rate of VAT in Indonesia is 11%.
- But can be reduced to 0% for certain exports and Gov. supplies.
Goods and Services excluded from VAT Indonesia
Indonesia already charges a low VAT rate as compared with other countries. But it still not only has reduced rates of VAT but also has VAT excluded. There’re many products and services excluded from the VAT in Indonesia.
- Financial Services
- Accommodation Services
- Insurance Services
- Religious Services
- Medical Services
- Social Services
- Domestic Energy
- Printed Books
History of Indonesia VAT
Indonesia implemented VAT in 1984 to minimize the evasion of taxes by both companies and individuals and transparency in the payment of taxes. At that time the VAT rate was 10%. The Gov. also clarifies that the rate depends on the current Gov. regulations.
Does my business have to register for VAT?
If you earn more than 4.8 billion Indonesian rupiah (IDR), You’ve to register for VAT and collect VAT from customers. Then you remit the tax to the Indonesia Tax Authorities. When you register for VAT, you can claim for VAT that you’ve paid for business expenses.
How to register for VAT
If your business turnover has more than 4.8 billion Indonesian rupiah (IDR), and now it’s time to register for VAT.
- You need a Tax ID Number (NPWP) for registration. You can get this id by submitting an application to the local tax office.
- After getting your Tax ID Number (NPWP), fill the registration known as Form 1 using an online VAT collect portal. The form must attach your business licence, and bank account details.
- After submitting your form, you’ll attend an interview with authorities.
- If your application is approved, you’ll receive a VAT registration number (NPPKP). You must include this VAT number on all your invoices.
Please see, How to Register for VAT in Indonesia
Some Goods and Services are exempted from VAT added
- Basic foodstuffs.
- Agricultural products.
- Educational services.
- Financial services.
- Cultural and artistic events.
Taxable Business in Indonesia
However, not all businesses need to register for VAT. If the turnover is less than 4.8 billion Indonesian rupiah (IDR). Here’s the list for business.
- Business with annual turnover is greater than 4.8 billion Indonesian rupiah (IDR), must register for VAT.
- Businesses that Import and export must register for VAT.
- Hotels, Restaurants, and telecommunications companies.
How to claim VAT return
The VAT registered business can claim VAT return. Here’s the steps of Claiming VAT.
- Keep accurate of all your documents, invoices, and other relevant documents.
- Calculate the total input tax paid.
- Calculate the total output tax paid.
- Submit a VAT tax return application, by online or manually. This application contains all your input and output tax details, as well as other relevant information.
- After submitting your application, the tax authority will see your request and reply according to your application.
VAT for Foreigners
Foreigners who conduct business in Indonesia, the rules and regulations are the same for foreigners as residents. Foreigners who are registered for PPN must charge VAT on their Goods and services.
Can Foreigners claim VAT refunds?
Yes, Foreigners who conduct a business in Indonesia and register for PPN can claim for VAT refunds. But the refund is a very complex process, so we advised you to hire an agent for the refund process.
In this article you’ve learned about the VAT rate in Indonesia, the current rate is 11%. If your business threshold is greater than 4.8 billion Indonesian rupiah (IDR), you must register for PPN. To register, you can register by online as well as manually.