The Ministry of Finance (MoF) has issued Minister of Finance Regulation (PMK) Number 11 Year 2025, revising the rules on the imposition of Value Added Tax (VAT) for goods and services subject to other value provisions as the tax basis (DPP) and certain amounts. The PMK came into force on 4th February 2025. The Ministry of Finance emphasises the importance of providing legal certainty in the calculation of VAT by using the tax basis in the form of other values and certain amounts of value-added tax.
The recent revision in PMK 11/2025 stipulates that the effective VAT rate for certain goods and services remains at 11%. Additionally, PMK 11/2025 revises several regulations, including PMK 75/PMK.03/2010; PMK 102/PMK.011/2011; and PMK 6/PMK.03/2021. Following the enactment of PMK No. 11/2025, all MoF Regulations governing VAT on the previously mentioned goods and services are declared ineffective. Director of Counselling, Services, and Public Relations of the Directorate General of Taxes, Dwi Astuti, explains the DPP for non-luxury goods and services that use other values as the DPP or a certain amount (Final VAT) is exempted from the provisions of Article 2 and Article 3 of PMK 131 Year 2024. The other value DPP of 11/12 of the selling price does not apply to the non-luxury goods and services mentioned, therefore the effective VAT rate remains at 11%, for example in the cases of self-building activities, sales of second-hand motor vehicles, and insurance services.
