Indonesia

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.

Tax authorities in Indonesia previously released a new version of the electronic-based invoice invoice (Faktur Pajak or ‘FP’). This includes a pre-populated feature to ease taxpayers’ workflow in carrying out VAT compliance. The pre-populated feature under eFaktur version 3.0 covers input VAT from normal VAT Invoices and import declaration documents. These documents will automatically appear in the eFaktur system under the respective tax period. Taxpayers are no longer required to input and validate the information manually.

Tax authorities in Indonesia previously released a new version of the electronic-based invoice invoice (Faktur Pajak or ‘FP’). This includes a pre-populated feature to ease taxpayers’ workflow in carrying out VAT compliance. The pre-populated feature under eFaktur version 3.0 covers input VAT from normal VAT Invoices and import declaration documents. These documents will automatically appear in the eFaktur system under the respective tax period. Taxpayers are no longer required to input and validate the information manually.