Indonesia VAT & Customs Duty Calculator – Calculate Import Tax & Value Added Tax

  • Adam
  • November 5, 2025

Calculate Indonesia VAT (11%-12%) and customs duty with our 2025 calculator. Supports all HS codes, import duty rates (0-450%), luxury goods tax, and combined import tax calculations. Get instant breakdown by product category.

Indonesia VAT & Customs Duty Calculator 2025

Calculate Indonesia VAT and customs duty instantly. This comprehensive calculator supports VAT rates (11% standard, 12% luxury goods), customs duty (0-450% by HS code, 7.5% for goods <$1,500), import tax calculation, luxury goods tax, and combined import duty assessment. Updated with the latest 2025 rates from Indonesia's Ministry of Finance and Customs Authority.

Value-Added Tax (VAT) Calculator

Customs Duty Calculator

Combined Import Tax Calculator

Your Tax Calculation Results

Detailed Tax Breakdown

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Understanding Indonesia's Indirect Tax System

Indonesia's indirect tax system comprises Value-Added Tax (VAT), customs duty, and special taxes on luxury goods and certain products. The Ministry of Finance administers these taxes, which constitute a significant portion of Indonesia's government revenue. The VAT system increased from 11% to 12% on January 1, 2025, with the 12% rate primarily applying to luxury goods while non-luxury items remain at 11% effective rate. Customs duties vary dramatically from 0% to 450% depending on product classification and trade policy objectives.

VAT Rates: 11%-12%

Standard 11% rate for most goods and services. 12% rate applies to luxury items and premium services (effective 1 January 2025).

Customs Duty: 0-450%

Varies by HS code and product category. General goods <$1,500 use 7.5%. Luxury vehicles: 5-50%, Alcohol: 5-150%, Textiles: 0-25%.

Luxury Tax: Variable

Additional tax on luxury goods: 150-200% (cars), 75% (yachts), 60-125% (motorcycles). Applied on top of standard duties.

Income Tax on Imports: 2.5%-10%

Applied on import value plus duties and VAT. Rate varies by importer status and product type. Corporate importers may face different rates.

Indonesia VAT Rates 2025

Effective January 1, 2025, Indonesia's VAT system includes differentiated rates to protect essential goods while generating revenue from luxury consumption. The 12% rate applies to luxury goods and premium services, while the 11% effective rate applies to standard goods and services. Essential items like basic food, medicines, and educational services remain exempt (0% VAT).

Product/Service CategoryVAT RateEffective DateNotes
Standard Goods & Services11% (Effective)2025-01-01Calculated as 12% × 11/12 for non-luxury items
Luxury Goods & Premium Services12%2025-01-01Premium rice, fruits, meats, fish, education, medical services
Exempt Items0% (Exempt)PermanentBasic food, prescription medicines, public services
Basic Rice & Grains0%2025-01-01Staple foods protected from VAT increase
Basic Meat & Poultry0%2025-01-01Excluded from 12% luxury rate
Electricity (Household ≤3500 VA)0%2025-01-01For low-income households
Electricity (3500-6600 VA)12%2025-01-01Premium household usage
Public Education0%PermanentGovernment schools and universities
Healthcare Services0% / 12%2025-01-01Public healthcare exempt; premium/private services may be 12%

Indonesia Customs Duty & Import Tax Rates

Indonesia imposes comprehensive customs duties ranging from 0% to 450% depending on the Harmonized System (HS) code classification. Goods valued under USD $1,500 generally qualify for a simplified 7.5% import duty rate. Luxury items face substantially higher rates to discourage consumption and generate government revenue. The actual import duty rate depends on specific product classification and current trade policy.

Product CategoryImport Duty RateVAT RateTotal Tax Impact
General Goods (<$1,500)7.5%11%18.5%+ combined
Passenger Vehicles5-50%11%16-61% combined
Luxury Vehicles5-50% + Luxury Tax11%150-200%+ total (incl. luxury tax)
Motorcycles25-100%11%36-111% combined
Electronics/Appliances0-20%11%11-31% combined
Clothing/Footwear0-35%11%11-46% combined
Alcohol/Beverages5-150%11%16-161% combined
Machinery & Equipment0-20%11%11-31% combined
Chemicals & Pharmaceuticals0-40%11%11-51% combined
Textiles & Fabrics0-25%11%11-36% combined

How to Calculate VAT in Indonesia

VAT Calculation for Sellers

VAT Output Calculation

Output VAT = Sales Value × VAT Rate (11% or 12%)
VAT Payable = Output VAT - Input VAT (from prior purchases)

Indonesian sellers registered as Taxable Entrepreneurs (PKP) collect VAT from buyers and remit the net amount to tax authorities. Input VAT from business purchases can be deducted from output VAT collected from sales.

VAT Calculation for Buyers

Total Price = Net Price + (Net Price × VAT Rate)

For example, a product priced at IDR 1,000,000 with 11% VAT: Total = 1,000,000 + (1,000,000 × 0.11) = IDR 1,110,000

How to Calculate Customs Duty in Indonesia

Standard Customs Duty Formula

Customs Duty Calculation

Customs Duty (IDR) = CIF Value (IDR) × Duty Rate (%)
CIF Value (IDR) = CIF Value (USD) × Exchange Rate

Combined Import Tax Formula

Total Import Tax = Customs Duty + VAT + Income Tax + Luxury Tax (if applicable)
VAT on Imports = (CIF + Customs Duty + Income Tax) × VAT Rate

Special Cases: Luxury Tax on Imports

Luxury goods imported into Indonesia face additional Luxury Goods Sales Tax (LGST) on top of regular customs duties and VAT. The LGST applies to specific high-value items and is calculated on the landed cost (CIF + customs duty + VAT).

Luxury Item CategoryLuxury Tax RateTax Base
Luxury Passenger Vehicles150-200%Selling price or import value + duties
Yachts & Pleasure Boats75%Import value + duties
Luxury Motorcycles60-125%Selling price or import value
Branded Footwear40%Invoice/selling price
Premium Alcohol5-20%Import value (additional to import duty)

VAT Exemptions and Exceptions

Certain goods and services are exempt from VAT (0% rate) under Indonesian law to ensure access to essential items and services. These exemptions are carefully defined and documented in Ministry of Finance regulations.

  • Basic Food Items: Rice, corn, wheat, flour, basic vegetables, basic meats and fish (non-premium), eggs
  • Medicines & Medical: Prescription pharmaceuticals, vaccines, medical equipment for health services
  • Education: Public school tuition, government university fees, formal education services
  • Healthcare: Government hospital services, public health clinics, emergency medical care
  • Public Transportation: Subsidized public bus services, commuter trains, water transportation
  • Financial Services: Insurance premiums, banking services, certain investment services
  • Religious Services: Religious instruction, sacred site maintenance, ceremony services
  • Government Services: Public administration, licensing, official certifications

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Frequently Asked Questions (FAQs)

What is Indonesia's current VAT rate?
Effective January 1, 2025, Indonesia has a differentiated VAT system: 11% effective rate (calculated as 12% × 11/12) for standard goods and services, and 12% for luxury items. The 11% and 12% rates replaced the previous 10% rate. Essential goods like basic food and medicines remain exempt (0% VAT).
How is VAT calculated on imported goods?
VAT on imports is calculated on the tax base of CIF value (Cost, Insurance, Freight) plus customs duty and any applicable income tax. Formula: VAT = (CIF + Customs Duty + Income Tax) × VAT Rate (11%-12%). The VAT is collected by customs at the time of import clearance.
What is the import duty rate for goods under $1,500?
For goods with CIF value under USD $1,500, Indonesia generally applies a simplified 7.5% import duty rate. However, this may not apply to prohibited items, restricted goods, or items with specific HS codes subject to different rates. Always verify the specific HS code classification for your product.
Do I pay both VAT and customs duty on imports?
Yes. When importing goods into Indonesia, you generally pay: (1) Customs Duty based on HS code, (2) VAT on the dutiable value, (3) Income Tax (typically 2.5%-10%), and potentially (4) Luxury Tax if it's a luxury item. These are separate taxes that accumulate. Some essential goods may be exempt from certain taxes.
What is considered a luxury good in Indonesia?
Luxury goods are defined as items not considered basic necessities and typically consumed by high-income earners. Examples include premium vehicles, yachts, premium foods (wagyu beef, king crab), branded footwear, expensive spirits, and premium education/medical services. These items face higher VAT (12%) and additional luxury tax.
What is the difference between CIF and FOB in import calculations?
CIF (Cost, Insurance, Freight) includes product cost, insurance, and freight to Indonesia's port—this is the value used for customs duty and import tax calculations in Indonesia. FOB (Free on Board) includes only the cost and freight to the port of departure, without insurance. Indonesian customs duties are calculated on CIF value.
Are there VAT exemptions for businesses in Indonesia?
Businesses engaged in providing exempt services (education, healthcare, financial services, insurance, government services) are generally not subject to VAT on those services. However, they cannot reclaim input VAT on purchases unless they also make taxable supplies. Registration as Taxable Entrepreneur (PKP) has specific requirements and benefits.
What is PKP status and how does it affect VAT?
PKP (Pengusaha Kena Pajak) is Taxable Entrepreneur status in Indonesia. PKP-registered businesses must charge VAT on taxable supplies and can reclaim input VAT from purchases. Non-PKP businesses generally cannot collect VAT or reclaim input VAT. Large businesses must register as PKP; small businesses can opt-in voluntarily.
What happens if I import prohibited or restricted items?
Prohibited items (drugs, certain weapons, counterfeits) face immediate seizure and legal penalties. Restricted items (alcohol, pharmaceuticals, certain electronics) require special permits and licenses. Violating import restrictions can result in criminal prosecution, substantial fines, and imprisonment. Always check with customs brokers before importing sensitive goods.
How do I determine the correct HS code for my product?
HS (Harmonized System) codes are 6-10 digit classification codes for all traded goods. Indonesia uses the HS system for customs duty classification. You can find codes through the Indonesian Customs Authority (DJBC) website, product description guides, or consult with customs brokers. Incorrect HS code classification can result in wrong duty rates and penalties.

Official Sources and References

Disclaimer: This calculator provides estimates based on current Indonesia indirect tax regulations as of 2025. VAT rates, customs duty classifications, and import regulations are subject to change with new government policies and Ministry of Finance directives. HS code classifications affect duty rates significantly; incorrect classification results in wrong duties. For accurate import planning and tax compliance, consult qualified Indonesian tax professionals, customs brokers, or the Directorate General of Taxes and Customs Authority.

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