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Indonesia raises VAT registration threshold

  • VAT
  • 26 January 2014 | Richard Asquith

Indonesia raises VAT registration threshold

Indonesia has raised its VAT registration threshold.  The aim is to lift the VAT compliance reporting burden for small and medium sized businesses.

The new threshold was set last month, and came into place on the 1 January 2014.  The new registration threshold is IDR 4.8bn per annum taxable turnover.  The previous threshold was IDR 0.6bn.

Value Added Tax (Pajak Pertambahan Nilai) in Indonesia is set at 10%.  Tax registered businesses must complete monthly VAT returns.  Foreign companies may not register for Indonesian VAT, and there is no facility for the recovery of local VAT by a non-established company.


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.