The rate: 12% on an 11/12 base
The Tax Harmonisation Law fixed PPN at 11% from April 2022 and 12% from 1 January 2025. After public pushback, the government decided at the end of 2024 that the higher rate would bite only on luxury goods. PMK 131/2024 does this by keeping the 12% rate but applying it to a DPP nilai lain of 11/12 of the price for everything else:
| Supply | Tax base | Rate | Effective |
|---|---|---|---|
| Regular goods and services | 11/12 × price | 12% | 11% |
| Luxury goods subject to PPnBM | Full price | 12% | 12% |
| Certain goods with specified bases (e.g. used cars, some agricultural goods) | Set % of price | 12% | Varies (often 1.1%–2.2%) |
| Exports | Full price | 0% | 0% |
The finance ministry confirmed this structure continues unchanged in 2026.
Add or extract PPN from any amount.
PPN Calculator →What is not subject to PPN
The law removes some items from PPN entirely and gives others a facility — either an exemption or tax "not collected". In everyday terms, you will not see PPN on:
- Staple foods — rice, corn, sago, soybeans, salt, meat, eggs, milk, fruit and vegetables.
- Medical and health services, education services, social services and religious services.
- Public transport, financial services, insurance, and labour services.
- Restaurant, hotel, parking and entertainment bills — these carry the regional PBJT tax (up to 10%, higher for some entertainment) instead.
Registration as a PKP
Businesses must register as a Pengusaha Kena Pajak (PKP) once taxable turnover exceeds Rp4.8 billion in a year, by the end of the following month. Smaller businesses can register voluntarily, which lets them reclaim input PPN and is often needed to sell to large companies. Foreign digital platforms (PMSE) such as streaming and app stores are appointed by DJP to collect PPN on sales to Indonesian consumers.
Tax invoices in Coretax
Since 1 January 2025 tax invoices (faktur pajak) are issued in Coretax, which replaced the old e-Faktur desktop application. Each invoice needs the buyer's NPWP or NIK and, for branches, the 22-digit NITKU. Regular sales using the 11/12 base use transaction code 04. Input PPN on purchases can be credited against output PPN in the same or a later period.
Returns and payment
- PPN is reported monthly on the SPT Masa PPN.
- Under PMK 81/2024, the underpayment must be paid and the return filed by the end of the following month.
- Late filing of a PPN return attracts a Rp500,000 fine, plus monthly interest on late payment.
- Excess input credit can be carried forward or, at year end, claimed as a refund (refunds trigger an audit unless the business qualifies for accelerated refunds).
PPN on property in 2026
New homes and apartments bought from a developer carry PPN. For 2026, PMK 90/2025 makes the government pay 100% of the PPN on the first Rp2 billion for homes priced up to Rp5 billion. See the property purchase calculator.
PPN facilities and specified tax bases are set in many separate regulations. Confirm the treatment of your goods or services with DJP or a tax consultant.