Indonesia VAT Registration Triggers and Thresholds
Updated 2 months ago
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Knowing when you are required to register for VAT in Indonesia is the first step to staying compliant. The rules differ depending on whether your business is based inside or outside Indonesia.
Resident Businesses (with Physical Presence in Indonesia)
Detail | Rule |
|---|---|
Registration type | PKP (Pengusaha Kena Pajak) |
Trigger | Annual gross turnover exceeds IDR 4.8 billion |
Measurement period | Prior calendar year |
Voluntary registration | Available for businesses below the IDR 4.8 billion threshold |
Effective date | Tax applies from the date of PKP registration |
Threshold reset | At the end of each calendar year |
Physical presence alone (office, warehouse, staff, or servers) does not automatically trigger a registration obligation. A threshold breach is required.
Non-Resident Businesses (No Physical Presence in Indonesia)
This applies to foreign companies selling SaaS, digital goods, or electronic services to Indonesian customers from outside Indonesia.
Detail | Rule |
|---|---|
Registration type | PMSE VAT Collector appointment |
Revenue threshold | IDR 600 million annually OR IDR 50 million per month |
User/traffic threshold | 12,000 users/transactions annually OR 1,000 users per month |
Trigger logic | Either/or — meeting either the revenue or the user threshold triggers the obligation |
Measurement period | Rolling 12 months or previous calendar month |
Effective date | Tax obligation starts from the effective date of PMSE appointment |
Rules effective date | July 1, 2020 |
Non-resident sellers are subject to a significantly lower threshold than domestic businesses, reflecting Indonesia's focus on capturing digital economy tax revenue from foreign providers.
What Counts Toward the Threshold?
Sales Type | Counted? |
|---|---|
B2B sales | Yes |
B2C sales | Yes |
Zero-rated supplies (e.g., exports) | Yes |
Exempt supplies | No |
Sales through an appointed marketplace/platform | No — attributed to the marketplace, not the seller |
Inter-company revenue | Yes |
Refunded or credited sales | Deducted at the date of refund |
Is There a Forward-Looking Test?
No. Indonesia does not use a forward-looking test for either the PKP or PMSE thresholds. Only historical sales data is used to determine whether a threshold has been crossed.
Marketplace Rules
If your products are sold through a digital marketplace that has been appointed as a PMSE VAT Collector by the DGT, the marketplace is responsible for collecting and remitting VAT on those sales. In this scenario:
Marketplace-facilitated sales are attributed to the marketplace, not your own threshold.
If the marketplace handles all your Indonesian sales, you may not need your own PMSE registration.
If you also sell directly to Indonesian customers outside the marketplace, those direct sales still count toward your threshold.
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