Indonesia Customs Update: VAT Increases in accordance with Undang-Undang Republik Indonesia Nomor 7/2021

In accordance with Undang-Undang Republik Indonesia Nomor 7/ 2021,¹ The Directorate General of General of Taxes from the Ministry of Finance has announced that VAT taxes will be adjusted upwards in two phases as shown below (translated from Bahasa Indonesia).

Chapter 7

1. Rate of Increase of Value which is:
2. 11% (eleven percent) which begins on 1st April 2022
3. 12% (twelve percent) which will begin latest 1st January 2025

You can find this chapter on page 67 of the ruling, downloadable from the official website. These will be increased from the current VAT amount of 10%. Sales taxes will vary and be applicable based on units of measure.

These will be increased from the current VAT amount of 10%.² Sales taxes will vary and be applicable based on units of measure.

These are expected to apply to cross-border imports into Indonesia including B2C imports when considering Indonesia’s current low de minimis value of USD3.

To find out more about staying prepared for Indonesia’s customs clearance requirements for B2C and B2B shipments into Indonesia, contact us today to find out more.

References:

1. UU No. 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan [JDIH BPK RI]
2. Deloitte – Indonesian Customs Guide 2019