Heaptalk, Jakarta — The Directorate General of Taxes (DJP) of Indonesia’s Ministry of Finance is revisiting the 12% Value Added Tax (VAT) policy that affects certain non-luxury goods. The review announced in a press release on Tuesday (7/1), seeks to address anomalies arising from the current regulations.
The Director General of Taxes, Suryo Utomo, highlighted that the revision focuses on non-luxury goods, including cryptocurrency transactions, agricultural commodities, and used vehicles. These are subject to the luxury goods VAT rate due to specific tax base (DPP) considerations.
“The imposition of the 12% VAT on these non-luxury goods stems from DPP values not covered under the Minister of Finance Regulation (PMK) No. 131/2025 stipulations,” Suryo explained.
He noted that the regulation’s multiplier of 11/12 keeps the effective VAT rate at 11% for most goods, which is in line with the standard VAT rate effective since April 2024. Suryo emphasized that the government is committed to ensuring the 12% VAT applies only to luxury goods, traditionally subjected to the Sales Tax on Luxury Goods (PPnBM). Goods with specific DPP calculations resulting in a 12% VAT impact on final consumer prices will be reviewed.
Dwi Astuti, Director of Counseling, Services, and Public Relations at DJP, reaffirmed that the VAT rate effective from January 1, 2025, remains 12% for luxury goods, as per PMK 131/2024. Meanwhile, other goods and services will continue to be taxed at an effective VAT rate of 11%.
Certain goods and services are exempt from PMK 131/2025’s DPP rules, including cryptocurrencies, specific agricultural products, and used motor vehicles, each governed by their respective regulations.
For instance, cryptocurrency transactions are regulated under PMK No. 81/2024, which imposes a 0.12% VAT on transactions through physical cryptocurrency traders. Similar specific regulations exist for other sectors to ensure equitable VAT calculations do not disproportionately burden consumers.
Dwi concluded that a draft regulation is being prepared to amend current tax rules, aiming to maintain fair VAT imposition without increasing consumer costs.
