Home » Services » Accounting Tax » Indonesia VAT Taxpayers Registration Services
What Is Value-added Tax (Pajak Pertambahan Nilai – PPN) in Indonesia?
Pajak Pertambahan Nilai – PPN is usually imposed on the sale of goods or services that occurs on consumption by the individual, corporate, and government taxpayers. However, entities or individuals of these products and services do not need to pay directly to the state, but the obligation to pay falls on the withholding tax.
This Value Added Tax (PPN) is imposed and paid directly by the Value Added Tax, but the charge is given to the end consumer. Every PKP is required to charge, deposit, and report VAT payable.
1. Value Added Tax Confirmation Form
2. Photocopy of the identity of all management (KTP for Indonesian citizens and Passport/KITAS/KITAP for foreigners)
3. Copy of NPWP of all management
4. Copy of Deed of Establishment and NIB
5. Letter of the lease agreement if leased or proof of office ownership if the office is owned
6. Have reported the Annual Tax Return for the last 2 years
7. Do not have tax debt
Schedule a free 15-minute discovery call to optimize your financial and tax strategy by connecting with Invest in Asia Consulting today.
Complete Services
Fast Registration Process
Dependable
Transparent
“Investinasia has been incredibly helpful in assisting with company formation as well as offering a range of tax and compliance advisory services. Thanks to the excellent support from Investinasia, the company has been able to focus on growing its business with confidence.“
“We would like to take this opportunity to express our sincere appreciation for the exceptional support from the InvestInAsia team. Their guidance made our business setup in Jakarta smooth and stress-free, and we truly value their continued support for our company.“
“The InvestInAsia team have been instrumental in helping us set up our PT. During the initial consultation, key information was delivered promptly and clearly. The team handled all administrative and compliance processes smoothly. Overall, I’d highly recommend Investinasia for business incorporation support. Thank you Investinasia team, please keep up the good work!“
“The Investinasia team is professional, communicative, and transparent. As a client, we only needed to provide the required documents. We're very satisfied and highly recommend this company to assist foreigners in running their business. “
“Hello, I recently worked with the InvestinAsia Team for my business travel needs, and I must commend the efficiency and seamless process from start to finish. I highly recommend their services to frequent business travellers and extend my appreciation to the team for making everything so smooth!”
“The InvestinAsia team’s response was fast and reliable. Their arrangements were clear and well-organized, exactly as explained to me beforehand. Truly professional support for my business travel.”
“I worked with the team at InvestinAsia to launch my business in Indonesia, and I couldn’t be happier. They were proactive, clear, and delivered everything on time with no surprises. The journey was smooth thanks to their consistent communication and valuable local insights. Highly recommended for anyone starting a business in Indonesia.”
Value-Added Tax (VAT) or Pajak Pertambahan Nilai (PPN) in Indonesian is typically levied on the purchase of goods or services consumed by individuals, corporations, and government entities. However, those purchasing these goods and services are not required to pay directly to the government; instead, the responsibility to pay lies with the withholding tax.
Taxpayers settle VAT at 11%.
Businesses need to register for VAT once their annual revenue reaches 4.8 billion rupiah (US$309,500). However, those earning less than this figure can register voluntarily.
There are three steps:
Complete the application form and attach necessary company documents, including the Tax Registration Number (NPWP) of the director.
Tax officers will visit your company to verify the provided information.
After field verification, a decision will be made within five working days. If approved, you'll receive an access code for the online VAT system. The company’s director must then visit the tax office to obtain the login ID and password.
VAT rates vary:
VAT registration involves listing your business with the government as engaged in production and sales.
Taxable goods and services include:
Entities must settle VAT liabilities monthly. Businesses with branches in different jurisdictions must register each branch with the relevant tax office.
Non-resident suppliers of digital services in Indonesia must collect 11 percent VAT and pay it to the government.