Indonesia VAT (PPN) Calculator
Add VAT to a net price, or find the net price and the VAT inside a price that already includes it.
How VAT works in Indonesia
VAT (pajak pertambahan nilai, PPN) is charged on most goods and services. The Tax Harmonisation Law raised the rate to 11% in April 2022 and to 12% from 1 January 2025. For most goods and services the tax base is set at 11/12 of the price, so the VAT actually paid still equals 11% of the price; goods classed as luxury pay 12% of the full price. That is why the calculator starts at 11%.
Examples
Adding VAT: an item of IDR 1,000,000 costs IDR 1,110,000, of which IDR 110,000 is VAT. Taking VAT out: a price of IDR 1,110,000 that includes VAT contains a net price of IDR 1,000,000 and IDR 110,000 of VAT. Do not simply subtract 11% from a VAT-inclusive price: the rate applies to the net price, so divide by 1.11 instead.
Who charges VAT
Businesses registered as VAT-able entrepreneurs (pengusaha kena pajak, PKP) charge VAT and issue tax invoices. Registration is required once annual turnover passes IDR 4.8 billion (PMK 197/2013) and is voluntary below that. Some goods and services are exempt or not subject to VAT. Invoices in a foreign currency must show the rupiah value, converted with the Ministry of Finance's weekly tax exchange rate on the invoice date.
Frequently asked questions
Is VAT 11% or 12%?
Both appear. The statutory rate is 12% from 2025, but for most goods and services the base is 11/12 of the price, so the effective burden is 11%. Luxury goods pay 12% of the full price.
Why not subtract 11% from the final price?
Because the 11% is calculated on the net price, not on the final price. Divide the final price by 1.11 to get the net price.
Which exchange rate applies to a foreign-currency invoice?
The weekly tax exchange rate (Kurs Pajak) set by the Ministry of Finance, valid on the invoice date.