Indonesia’s President has announced that the VAT rate will increase from 11% to 12%, starting 1 January 2025. However, the VAT increase will only be applicable to luxury goods and services like private jets, yachts, cruise ships, and luxury homes.
The VAT rate for other goods and services will remain at 11%.
Earlier, Indonesia’s Finance Minister, Sri Mulyani Indrawati, had announced that the standard VAT rate will rise from 11% to 12%.
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