🇮🇩 Indonesia · 2026
PPN (VAT) Calculator
Indonesia's VAT rate is 12%, but for almost everything except luxury goods it is charged on a tax base of 11/12 of the price — an effective 11%. This calculator shows the DPP, PPN and total both ways.
Tax year 2026Last reviewed 2 Oct 2026
Why the rate is 12% but you pay 11%
The Tax Harmonisation Law (UU HPP) raised PPN from 10% to 11% in April 2022 and to 12% from 1 January 2025. On 31 December 2024 the government decided the full 12% would only fall on luxury goods. PMK 131/2024 achieves this without changing the rate: for regular goods and services, PPN is calculated on a DPP nilai lain (other tax base) equal to 11/12 of the selling price.
Regular goods: PPN = 12% × (11/12 × price) = 11% of price
Luxury goods (PPnBM items): PPN = 12% × price, plus PPnBM where applicable
Finance ministry officials confirmed there is no change for 2026, so these rules continue. On tax invoices issued through Coretax, regular sales use transaction code 04 with the 11/12 base shown separately.
What counts as luxury
The 12% on the full price applies to goods that also attract PPnBM (luxury sales tax): motor vehicles, high-end residences, private aircraft, yachts and similar items, plus some firearms. Everything else — food at restaurants, electronics, software, professional services, rent of commercial space — uses the 11/12 base.
Not subject to, exempt or relieved
- Outside the PPN system: restaurant and hotel bills (taxed instead by the regional PBJT of up to 10%), money and securities, religious services and government administration services.
- Exempt or zero-taxed by facility: staple foods (rice, corn, sago, soybeans, salt, meat, eggs, milk, fruit and vegetables), medical services, education, social services, public transport, financial services and insurance, and basic water and electricity for households up to certain limits.
- Exports of goods and certain services are zero-rated at 0%.
Who charges PPN
A business must register as a PKP (Pengusaha Kena Pajak, taxable entrepreneur) once its turnover exceeds Rp4.8 billion a year, and smaller businesses may register voluntarily. Only PKPs can issue tax invoices (e-Faktur) and reclaim input VAT. Monthly PPN returns and payments are due by the end of the following month.
VERIFY ITEM
Classification decides the rate. Check specific goods against PMK 131/2024 and PPnBM rules, or ask DJP or a registered consultant.
Frequently Asked Questions
What is the PPN rate in Indonesia in 2026?+
The statutory rate is 12%. For regular goods and services it is charged on a tax base of 11/12 of the price, so the effective rate is 11%. Only luxury goods subject to PPnBM pay 12% on the full price.
How do I calculate PPN on a price that already includes tax?+
For regular goods, divide the total by 1.11 to get the price before tax, then multiply that by 11% (or 11/12 × 12%). For luxury goods, divide by 1.12.
When does a business have to charge PPN?+
A business must register as a PKP and charge PPN once annual turnover exceeds Rp4.8 billion. Smaller businesses can register voluntarily.
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