PPN basics for small businesses
When you must register for PPN, how the 11% works on your invoices, and the records the tax office expects to see each month.
DMS Project team5 Nov 2026 · 1 min read
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PPN is Indonesia’s value-added tax. Once your business is a PKP (taxable entrepreneur), you charge it on sales and reclaim it on purchases.
Output and input tax
Output tax is the PPN you charge customers. Input tax is the PPN you pay suppliers. You pay the difference each month.
A quick example
Line | Amount |
|---|---|
PPN on sales | Rp 11.000.000 |
PPN on purchases | Rp 4.400.000 |
To pay | Rp 6.600.000 |
Official guidance
Always check the latest rules from the tax office.
Start with cash flow (free)
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