01.04.22

Changes in standard VAT rate

With the signing into law of the Harmonisation of Tax Regulations (HPP) on 29 October 2021, it is officially confirmed that the standard VAT rate in Indonesia will increase from 10% to:

1. • 11% ‒ from 1 April 2022.
   • 12% ‒ from 1 January 2025.

The law aims to optimise revenue collection and tax compliance after the COVID-19 pandemic caused a big hit to state coffers.