The Indonesian VAT registration threshold is IDR 4.8 billion sales per annum. Paper-based applications for VAT registrations should be submitted to the regional tax office of the business. Once registered, the tax payer is granted a Tax Identification Number (TIN) of 15 digits.
It is not possible for connected businesses to register under a single VAT number, a Group VAT registration. However, businesses with regional branches may apply for a centralised VAT return and payment process.
Voluntary registrations are permitted for businesses under the VAT registration threshold. Pre-registration input VAT may only be reclaimed in relation to capital goods.
Explore global VAT updates, new e-invoicing mandates, and key U.S. sales tax changes in this annual Avalara report.
Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.