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Indonesia drops Luxury Goods Sales Tax

  • VAT
  • 13 June 2015 | Richard Asquith

Indonesia drops Luxury Goods Sales Tax

Indonesia is to withdraw its high rate luxury tax in a bid to stimulate consumption and spending. The tax is levied at between 10% and 125% depending on the nature of the goods. Indonesia’s growth has fallen in the past year, and consumption has been the biggest loser.

Goods subject to the tax include: phones; cameras; motor cars; alcohol; watches; previous stones.

Standard Indonesia VAT is 10%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.