- Value Added Tax (VAT) is a consumption tax applied to goods and services at every stage of the supply chain
- End consumers bear the VAT, collected and remitted by businesses
- VAT requirements are crucial for foreign companies in Indonesia to maintain compliance
- VAT applies to individuals, organizations, or businesses engaging in taxable sales or services in Indonesia
- Indonesia has a standard VAT rate of 11%, with certain goods and services subject to reduced rates or exemptions
- Foreign companies may need to register for VAT in Indonesia, especially if providing digital products or services
- Registration threshold is IDR 4.8 billion annually, and companies must collect, report, and remit VAT on sales to Indonesian customers
- Foreign companies without a physical presence in Indonesia must appoint a local tax representative for VAT registration and compliance.
Source: berdikariconsulting.co.id
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
