- Government of Indonesia announced VAT increase on January 1, 2025
- Minister of Finance issued Regulation No. 131 of 2024
- VAT for luxury goods increased from 11% to 12%
- Directorate General of Tax issued Regulation No. PER-1/PJ/2025
- 12% VAT rate applies to motor vehicles and luxury goods subject to PPnBM
- VAT on goods and services currently taxed at 11% remains unchanged
- Highlights of MOF Reg. 131/2024 and DGT Reg. 1/2025:
- VAT treatment for luxury goods
- VAT treatment for goods and services subject to special rules
- VAT treatment for other non-luxury goods and services
Source: ssek.com
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.
