Tax & Accountancy Services
One of the business owner’s biggest concerns when they set up a company in Indonesia is ensuring they adhere to the correct working practices and that means paying the correct taxes and VAT.
Many new business owners ask whether they need to register for VAT and this depends on a few different factors; but before we get there, let’s clarify what it is and who it is relevant to.
Value Added Tax (VAT) is a tax imposed on most goods and services within Indonesia. The standard taxable rate is 10%; however, some goods or services are charged at different rates ranging from 5 – 15% in accordance with Indonesian Regulations.
It should be noted that Indonesia levies a separate GST on the sale of luxury items, which ranges between 10% and 50%.
In general, your business is required a VAT registration number when it reaches an annual revenue of 4.8 billion IDR (Approx. 360,000 USD).
As well as different VAT identification number rates, some business services issue are subject to 0% VAT, which as of 1st April 2019 includes:
Services connected to movable goods, utilised outside of the Customs Area that comprise:
Services connected to return immovable goods located outside of the Customs Area in the form of consultation services for construction.
Other services where the output is utilised outside of the Customs Area and utilisation are based on a request from an overseas business recipient. These services comprise:
If your company is considered as Pengusaha Kena Pajak (PKP) you must report your VAT invoice related to taxable turnover business activity monthly.
Companies with several branches must threshold register each branch with the Kantor Pelayan Pajal (KPP).
To register for VAT, businesses must submit several documents, including:
T: 021 300 297 27 E: [email protected] or Visit us in our office Bellagio Mall, Jl. Mega Kuningan Barat Kav.E4 No.3, Setiabudi, Jakarta 12930, Indonesia or fill in the contact form below!
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