Tax Update SSJK Consulting January 2025 - Finally, Indonesia's 12% VAT Era Begins!
As of 1 January 2025, the Indonesian Government has implemented a 12% VAT as stipulated in the Harmonization Law No. 7 of 2021. However, to accommodate public requests, the Ministry of Finance (MoF) issued Regulation No. 131 of 2024 (“PMK-131”), adjusting the VAT back to 11% for certain taxable goods and/or services.
PMK-131 stipulates that the 12% VAT applies to:
- The import value or selling price of luxury goods, and
- Other Values for non-luxury goods, resulting in a VAT rate adjustment back to 11%.
Please download our Tax Update for complete information on the link below.
