VAT (PPN)
The VAT (PPN) rate is 12% since 1 January 2025. For goods other than luxury goods the taxable base is 11/12 of the selling price, so the effective rate is 11%; luxury goods subject to luxury sales tax bear the full 12%. Minister of Finance Regulation 11/2025 sets other bases and specific amounts with the formula 12% × 11/12. Reference: Directorate General of Taxes; PMK 131/2024 and PMK 11/2025.