What is PPN (Indonesian VAT)?

PPN (Pajak Pertambahan Nilai) is Indonesia's value-added tax on the consumption of goods and services within Indonesia. PPN is multi-stage non-cumulative — levied at every supply step, but never compounding thanks to the input-credit mechanism.

Core concept

PPN is not collected directly by the state from consumers but routed through Pengusaha Kena Pajak (PKP, taxable enterprises) acting as "collectors" — who then remit the net difference to the state.

This mechanism makes PPN neutral for businesses ("pass-through") — the end burden lies with the consumer.

Current rates (PMK 131/2024)

Effective January 2025:

Details: PPN & DPP Nilai Lain.

Who must collect PPN?

Pengusaha Kena Pajak (PKP). Mandatory PKP registration kicks in when turnover exceeds Rp 4.8 billion/year (see PKP vs Non-PKP).

Businesses below that threshold may:

• Stay non-PKP → no PPN collection, no input-VAT credit
• Voluntarily register as PKP → collect PPN, credit input VAT

Faktur Pajak

The evidence of PPN collection is the electronic Faktur Pajak reported to DJP. Every PPN-bearing sale by a PKP must come with a Faktur Pajak using a serial number assigned by DJP.

How esaFiskaly handles it

1. 1

   Mark the tenant as PKP

2. 2

   Enable the PKP flag in Tenant Profile. The system automatically adds VAT columns to invoices.

3. 3

   Create a sales invoice

4. 4

   Each line item can be flagged as "VAT-bearing" — the system computes 11% (non-luxury) or 12% (luxury) per item setting.

5. 5

   Faktur Pajak issued automatically

6. 6

   Serial numbers come from the DJP pool you have loaded. A printable A4 format is available under Faktur Pajak → Print.

7. 7

   Output vs Input tracking

8. 8

   The Tax module summarises the period: Σ Output VAT − Σ Input VAT = PPN to remit.

9. 9

   Generate the SPT Masa PPN

10. 10

    XML/CSV output is ready for upload to e-Faktur DJP. See SPT Masa vs Tahunan.

Frequently asked

Next

• PPN & DPP Nilai Lain (PMK 131/2024)
• PKP vs Non-PKP
• SPT Masa vs SPT Tahunan