#Value Added Tax (VAT)

The Government Cancels Plans to Impose VAT on Toll Roads and Taxes on the Wealthy. Here’s Why!

The government has canceled plans to impose VAT on toll roads and a tax on the wealthy. The policy has been postponed to help maintain purchasing power amid the ongoing economic recovery.

Apr 27, 2026

Expanding the Tax Base, Government Reviews VAT Imposition on Toll Roads

The government is reviewing a new tax on toll roads as part of its tax extensification strategy. This plan is outlined in the Directorate General of Taxes (DGT) Strategic Plan (Renstra) 2025–2029.

Apr 21, 2026

DGT Tightens Preliminary Tax Refunds, Focuses on Compliant Taxpayers

Starting May 1, 2026, the government will tighten tax refund policies. The Directorate General of Taxes (DGT) will focus on compliant taxpayers, with stricter selection mechanisms and clearer completion timelines.

Apr 20, 2026

Tax Revenue Grows 20.7% in Q1 2026, Signaling Economic Improvement

Tax revenue in the first quarter of 2026 reached IDR 394.8 trillion. The government says this reflects improving economic conditions and stronger tax compliance.

Apr 6, 2026

VAT on Cavalry Horses Borne by the Government

Through PMK 61/2025, the government bears the VAT on the transfer of cavalry horses and their equipment, effective from 1 September to 31 December 2025.

Sep 4, 2025

Government Waives VAT, Lowering Airfare for Eid Homecoming Travel

Through the Ministry of Finance, the government provides a Value Added Tax (VAT) relief for domestic economy-class flight tickets. This policy aims to ease the financial burden on people traveling for the 2025 Eid homecoming.

Mar 2, 2025

Tax on Digital Economy Businesses Reaches IDR 33.39 Trillion

As of January 31, 2025, tax revenue from the digital economy sector continues to increase, dominated by Value Added Tax on Trade Through Electronic Systems (VAT PMSE), crypto tax, fintech tax, and tax on procurement transactions through the SIPP platform.

Feb 13, 2025

Providing Flexibility, DGT Implements e-Faktur Desktop and e-Nofa Alongside Coretax

In response to issues with the Coretax system, the Directorate General of Taxes (DGT) has reintroduced the option for creating tax invoices through the e-Faktur (e-Invoice) Client Desktop application and e-Nofa application for certain VAT-Registered Persons.

Jan 24, 2025

DGT: 12% VAT Overpayment to Be Refunded

The Directorate General of Taxes (DGT) ensures that taxpayers who have paid 12% VAT in 2025 can apply for a refund of the overpaid tax.

Jan 3, 2025

Checking into the Hospital? Don’t Worry About VAT on Your Bill

Healthcare services, including hospitals, are classified as specific Strategic Taxable Services (JKP) and are exempted from Value Added Tax (VAT).

Oct 26, 2024

PMK 172/2023 Reorganizes VAT on Related-Party Transactions, DGT Authorized to Adjust Selling Price

Through Minister of Finance Regulation (PMK) Number 172 Year 2023, the Directorate General of Taxes (DGT) is now authorized to make adjustments to the selling price or replacement value, as the basis for imposing Value Added Tax (VAT), in transactions affected by special relationships.

Jan 18, 2024

VAT Exemption for Low-Income Houses Renewed

The provision regarding the exemption of Value Added Tax (VAT) on the transfer of public houses for low-income people, Pondok boro workers' houses, and student dormitories is renewed through the Minister of Finance Regulation (PMK) Number 81/PMK.010/2019.

Jun 26, 2023

VAT Rate Increase Impacts The Transfer of Agricultural Products & Subsidized Fertilizers

The increase in the Value Added Tax (VAT) rate to 11% as of 1 April 2022 and to 12% no later than 2025 will also impact the agricultural sector, primarily related to the transfer of agricultural products and subsidized fertilizers.

Apr 13, 2022

Sale and Purchase of Used Vehicles Subject to VAT Special Rate of 1.1%

Starting from 1 April 2022, every sale of a used motor vehicle will be subject to a Value Added Tax (VAT) of 1.1% of the selling price. This value is 10% of the current VAT rate of 11%.

Apr 12, 2022

Fintech and Online Loans are New Targets for Government Taxation

Starting 1 May 2022, the government makes technology-based financial service transactions (Fintech) and online loans new targets for the imposition of Value Added Tax (VAT) and Income Tax.

Apr 9, 2022

LPG is Impacted by the VAT Increase, Here's the Tax Calculation

The government argues that the VAT rate increase on LPG from 10% to 11% as of 1 April 2022 is in order to widen the tax base.

Apr 7, 2022

These 7 Types of Services are Eligible For VAT Rate Reductions

Apr 7, 2022

Procedures for the Imposition and Reporting of VAT on Self-Building Activities

The Minister of Finance confirmed the increase in the VAT rate as of 1 April 2022 and the taxation procedures and special reporting on self-building activities for residents and/or places of business with a building area of ??at least 200 square meters.

Apr 6, 2022

Rate Rises, Minister of Finance Releases List of 11 Transactions of Value Added Tax Object

The Minister of Finance confirmed an increase in the VAT rate to 11% as of 1 April 2021, targeting 11 transactions for the transfer of goods and services, ranging from fertilizers, cigarettes, and used motorcycles, to crypto assets.

Apr 6, 2022