Indonesia imposes VAT or Goods and Services Tax (GST) on most goods and services at a standard rate of 10%. VAT is locally called referred as Pertambahan Pajak Nilai or PPN. Imports are subject to VAT and GST, but exports are not. Certain items are taxed at reduced rate of 8.4 % for cigarette supplies and 4 % for in house construction.
Indonesia imposes VAT or Goods and Services Tax (GST) on most goods and services at a standard rate of 10%. VAT is locally called referred as Pertambahan Pajak Nilai or PPN. Imports are subject to VAT and GST, but exports are not. Certain items are taxed at reduced rate of 8.4 % for cigarette supplies and 4 % for in house construction.
Few basic services are not subject to VAT. Services exempt from VAT include food, beverages, accommodation, educational, financial, insurance, public postal, medical, public transport, religious and social services.
Find the VAT price and net price in Indonesia (GST % is 10) for an amount of 25000 Rp
Solution :
GST % = 10
Amount = 25000
Step 1 :
GST Price = (25000 * 10 ) / 100
= 2500 Rp
Step 2 :
Net Price = 25000 + 2500
= 27500 Rp
Hence the VAT Price is 2500 Rp and Net Price is 27500 Rp
Solution :
GST % = 10
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 10)))
= 25000 - (25000 * 0.91)
= 25000 - 22727.27
= 25000 - 22727.27
GST Price = 2272.73 Rp
Step 2 :
Net Price = 25000 - 2272.73
= 22727.27 Rp
Hence the VAT Price is 2272.73 Rp and Net Price is 22727.27 Rp
Few basic services are not subject to VAT. Services exempt from VAT include food, beverages, accommodation, educational, financial, insurance, public postal, medical, public transport, religious and social services.
