Indonesian VAT (PPN 11%): how to calculate it on an invoice
Working out Indonesian VAT (PPN) is simple once you know who may charge it and whether your prices include it. Here's the explanation and the formulas, with worked numbers.
Updated Oct 17, 2026
Who charges VAT?
Only a VAT-registered business (Pengusaha Kena Pajak, PKP), confirmed by the Directorate General of Taxes, charges VAT. Small businesses with gross turnover up to Rp4.8 billion a year don't have to register, but may choose to.
If your business isn't VAT-registered, don't add VAT to your invoices.
Why 11%?
From 1 April 2022 the VAT rate was 11%, under the Harmonization of Tax Regulations Law (UU HPP). From 1 January 2025 the rate became 12%, but for most goods and services (other than luxury goods), Minister of Finance Regulation 131 of 2024 sets the tax base at 11/12 of the selling price. So the VAT your customer pays is still 11% of the price: 12% × 11/12 = 11%.
VAT rules change, and some goods and services are exempt or treated differently. Check the rate and how to show it for your business with your accountant or tax adviser.
Prices that exclude VAT
This is the usual way on business-to-business invoices: prices are written without tax, and VAT is added below.
VAT = price × 11% Total = price + VAT (or price × 1.11) Price Rp10,000,000 VAT Rp10,000,000 × 11% = Rp1,100,000 Total Rp11,100,000
Prices that include VAT
If you've already quoted a price including tax, for example in a shop or a quotation, take the VAT out of the total by dividing by 1.11.
Price before VAT = total ÷ 1.11 VAT = total − price before VAT Total Rp5,550,000 Price before VAT Rp5,550,000 ÷ 1.11 = Rp5,000,000 VAT Rp5,550,000 − Rp5,000,000 = Rp550,000
Quick table
| Price before VAT | VAT 11% | Total |
|---|---|---|
| Rp1,000,000 | Rp110,000 | Rp1,110,000 |
| Rp2,500,000 | Rp275,000 | Rp2,775,000 |
| Rp10,000,000 | Rp1,100,000 | Rp11,100,000 |
| Rp25,000,000 | Rp2,750,000 | Rp27,750,000 |
An invoice isn't a tax invoice
- As a PKP you must still create a tax invoice (faktur pajak) for each taxable supply, through the Directorate General of Taxes' system. Writing VAT on your invoice isn't enough.
- Make sure the VAT on your invoice matches the tax invoice.
- When an invoice has lines with different taxes, charge VAT only on the taxable lines.
VAT in Shura
- 1Open Taxes in the Invoicing app and create a “PPN” tax at 11%. Add your tax ID (NPWP) to your company details, so it shows on your invoices.
- 2When you create an invoice, choose PPN on each taxable line. Shura adds it on top of the line's price and works out the total.
- 3VAT is worked out per line and rounded for the currency, so subtotal, tax and total always add up.
- 4Shura makes invoices, not tax invoices: if you're a PKP, still create your faktur pajak in the tax system.
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