Foreign investors in Indonesia must register for VAT once their annual turnover exceeds IDR 4.8 billion (US$300,000). After registration, all VAT invoices must be issued and validated through the e‑Faktur system, with monthly reporting and reconciliation required. Non‑compliant invoices and inconsistencies between invoices, returns, and accounting records can trigger audits and penalties.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
MUC · 4 days ago
Indonesia's DGT introduces an 80% threshold for accelerated tax refunds for low-risk VAT-registered persons. The threshold requires qualifying activities to account for at least 80% of total eligible supplies. Taxpayers below the threshold still receive refunds, but through the regular audit process.
International Tax Review · 11 days ago
Indonesia will bear VAT on domestic economy-class airline tickets during the 2026 school holiday period, as per Minister of Finance Regulation No. 43 of 2026. The incentive covers tickets purchased from 22 June to 5 July 2026 and flights operated between 24 June and 5 July, with airlines required to issue VAT invoices and submit a detailed electronic list by 30 September 2026.
The Bali Sun · 3 months ago
Indonesia has introduced a VAT cut on domestic flights, exempting economy class tickets for purchases and flights within 60 days of the regulation's enactment. The measure, effective 25 April 2026, caps fare increases at 9‑13% and will make domestic airfares effectively VAT‑free from mid‑June. The policy aims to support the aviation sector amid rising fuel costs.
Antara News · 3 months ago
Indonesia has introduced a regulation covering VAT on base fares and fuel surcharges for economy‑class domestic flights to help reduce airfares amid rising fuel costs. The measure applies for 60 days from 25 April 2026 and includes a fuel surcharge cap of 38% for both jet and propeller aircraft, while limiting fare increases to 9‑13%.
Indonesia Business Post · 6 months ago
Indonesia's Finance Minister Purbaya Yudhi Sadewa announced plans to inspect a Chinese‑owned steel company suspected of VAT evasion next week. The Ministry has identified 40 steel firms, with the two largest slated for inspection, and estimates that VAT avoidance could cost the state over Rp 4 trillion annually. The investigation will involve tracing tax reports, company registrations, ownership, and detaining tax‑related personnel.
VATCalc · about 14 hours ago
China is expanding its mandatory e-fapiao VAT invoice pilot, phasing out paper invoices in 2026. Regional tax authorities now require businesses to issue digital invoices through government platforms. The move follows the nationwide rollout of fully digital e-fapiao from 1 December 2024.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
VAT registration becomes mandatory when a company’s annual turnover exceeds IDR 4.8 billion (US$300,000).
Foreign investors must use the e‑Faktur system; invoices must be generated and validated through it.
Companies must report VAT monthly, reconciling issued invoices, VAT figures, and accounting records.
Primary source
Read the full article at ASEAN BriefingThis summary was published on VATfaqs.com on 10 January 2026. It relates to VAT developments in Indonesia. The original source is ASEAN Briefing.
