Scope and Calculation of VAT in Indonesia 12%

Here is how the price of a luxury home is calculated after the VAT hike: the PPnBM rates vary, with the lowest set at 101 TP3T and the highest set at 2001 TP3T. The PPnBMs that fall into the 201 TP3T rate group are luxury homes, such as non-split-title type houses and townhouses selling for 20 billion rupiahs or more, and condominiums, strata apartments, townhouses, and townhouses selling for 10 billion rupiahs or more. , townhouses, etc.
If a company or developer sells a luxury house for twenty billion dongs, the house is a taxable item BKP, subject to VAT as well as PPnBM 20%. when the VAT rate remains 11%, the price of the luxury house in the hands of the buyer or consumer will be: taxed house price of twenty billion dongs, value of VAT: 11% x twenty billion dongs = 2.2 billion dongs, value of PPnBM: 20% x twenty billion dong = four billion dong, and the after-tax price of the house in the hands of the consumer: 26.2 billion dong. When the VAT rate is 12%, the price of the luxury house in the hands of the buyer or consumer: taxed house price of two tens of billions of rupiahs, VAT value: 12% x two tens of billions of rupiahs = 2.4 billions of rupiahs, PPnBM value: 20% x two tens of billions of rupiahs = four billions of rupiahs, and after-tax price of the house in the hands of the consumer: 26.4 billions of rupiahs. When the VAT rate on luxury goods is increased from 11% to 12%, the change in the price of, for example, a luxury house worth twenty billion dongs is about two billion dongs, equivalent to 0.76%.