The rate
The standard rate in Indonesia is 11%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
The statutory rate is 12%, but PMK 131/2024 applies it to a base of eleven twelfths of the price for every supply of goods or services except goods carrying luxury goods sales tax, which works out at 11%. Luxury goods pay the full 12%.
Who must register
Rp4,800,000,000 of gross turnover or receipts in a book year. Below that you are a pengusaha kecil, you do not register, you do not issue tax invoices and you do not file VAT returns. Once turnover passes Rp4.8 billion you must report your business for PKP confirmation no later than the end of the book year in which you crossed it (PMK 164/2023, art. 17). A smaller business may opt in voluntarily. Since PER-19/PJ/2025 the application no longer requires a clean two-year filing history: submit the form with photographs and a map of the premises, and invoice-creation access is switched on from the date of confirmation. The KPP visits the premises within 30 days to verify them and can revoke confirmation if the business is not there.
Filing and paying
Registered and filed with Directorate General of Taxes (DJP).
Monthly. The SPT Masa PPN is filed in Coretax by the end of the month following the tax period — the June period is due 31 July. VAT payable must be paid by that same date and before the return is submitted, so generate the billing code and settle it first. A nil period is still filed.
Penalties for getting it wrong
A late VAT return costs a fixed fine of Rp500,000, the highest of any return type — other monthly returns are Rp100,000. Late payment adds monthly interest under Article 9(2a) of the General Tax Provisions Law at a rate the Ministry of Finance sets each month, running for up to 24 months, with part of a month counted as a whole month. Separately, a PKP that stops filing — three consecutive VAT returns missed, or six in a calendar year — has its access to issue tax invoices suspended, which stops the business trading on credit.