Indonesia’s Value Added Tax (VAT) system is governed by several regulations, with a standard VAT rate of 11%.
From January 2025, a higher 12% VAT rate applies to luxury goods and certain services, while key essentials remain at the standard rate. Imports are also subject to VAT, following updated thresholds.
Table of contents
VAT rates in Indonesia
| Rate | Type | Examples of Goods & Services |
|---|---|---|
| 12% | Luxury | Premium rice, high-end meats (e.g., wagyu), premium education, VIP medical services |
| 11% | Standard | Most taxable goods and services, including office supplies, hotels, marketing services |
| 0% | Zero-rated | Exported goods and services, international freight, IT services, toll manufacturing |
| Exempt | Exempted | Basic food items (e.g., rice, eggs, meat), public transport, standard education and medical care |
For more details, visit the Directorate General of Taxes’s (DJP) website.