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08 April 2022

The government officially increases the VAT rate to 11 percent

The government through the Ministry of Finance has officially increased the VAT rate from 10 percent to 11 percent starting today, namely

April 1, 2022, which is the mandate of Article 7 of Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP).


he Ministry of Finance details certain goods and services that are provided with VAT-free facilities covering basic needs such as rice, grain,

corn, sago, soybeans, salt, meat, eggs, milk, fruits, vegetables and sugar consumption.


Then also health services, education services, social services, insurance services, financial services, public transportation services and labor services.


Furthermore, vaccines, textbooks, holy books, clean water which includes the cost of connection or installation and the cost of fixed charges and electricity except for households with a power of more than 6600 VA.


This VAT rate adjustment was also accompanied by a decrease in the Individual Income Tax (PPh) rate on income up to Rp60

million from 15 percent to 5 percent.


This effort is also to support the business world, especially small and medium groups while still paying attention to financial health



The Directorate General of Taxes (DGT) has also adjusted tax service applications such as Desktop e-Faktur, Host to Host e-Faktur, e-Faktur

Web, VAT Refund and e-Nofa Online.



Source: https://www.antaranews.com/berita/2794717/pemerintah-resmi-naikkan-tarif-ppn-jadi-11-persen