The 11% standard rate of PPN in Indonesia, who must register with Directorate General of Taxes (DJP), what a PPN invoice must show, and when returns and payments are due.
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Updated for 2026
Last reviewed September 2026
This is the general edition of this guide for Indonesia. It explains how the NPWP, PPN and annual filing work and names Directorate General of Taxes (DJP) as the place to confirm thresholds and dates. Country-specific figures are added as each edition is reviewed.
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 headline rate is 12% from 2025 but applied on a base that keeps the effective rate at 11% for most goods.
Who must register
Registration becomes compulsory once taxable turnover passes the threshold Directorate General of Taxes (DJP) sets, measured over a rolling period. Below it, registration is usually voluntary, which makes sense if your customers are registered businesses that can reclaim what you charge.
How to register
Register with Directorate General of Taxes (DJP) using your NPWP. Once registered you receive a PPN registration number or certificate, and from that date you must charge PPN on taxable sales, issue compliant invoices and file returns even when nothing is due.
Charging PPN on an invoice
Show the net amount, the PPN rate, the PPN amount and the gross total, with your registration number in the header. Prices quoted to consumers should include PPN; prices quoted to businesses usually exclude it and say so. The Indonesia calculator adds or removes PPN and shows the arithmetic.
Filing and paying
Returns are periodic, most often monthly or quarterly, and report the PPN you charged less the PPN you paid on purchases. The difference is paid to Directorate General of Taxes (DJP) by the return deadline; a repayment is claimed when purchases exceed sales.
Penalties for getting it wrong
Late registration, late returns and late payment each attract penalties and interest with Directorate General of Taxes (DJP). Charging PPN while unregistered is an offence in most countries. If you missed the threshold, register now and declare the back period.
Questions people ask
How do I add PPN to a price?
Multiply the net price by 1.11. A Rp100 sale at 11% carries Rp11 of PPN and totals Rp111.
How do I remove PPN from a total?
Divide the gross by 1.11 to get the net, then subtract to find the tax. Dividing, not taking a percentage off, is the step people get wrong.
Should I register voluntarily?
If most of your customers are registered businesses, yes: they reclaim what you charge and you reclaim what you pay. If your customers are consumers, registration raises your prices by the tax rate or cuts your margin.
What if I am not registered?
Do not charge PPN and do not show a PPN line. State on the invoice that no PPN was charged. The generator prints that line when the toggle is off.
Sources
Directorate General of Taxes (DJP) — the official guidance for Indonesia
How this guide was made
Written from published tax-authority guidance and reviewed on 2026-09-03. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Directorate General of Taxes (DJP) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Directorate General of Taxes (DJP).
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Tools for Indonesia
Invoices, quotations, purchase orders, credit notes and waybills in IDR, with PPN and the NPWP on the document. Plus a PPN calculator. Everything runs in your browser and nothing is uploaded.