As per Ministry of Finance Rule PMK 131, for most goods and services, a 12% VAT rate is applied on a Tax base in the form of the Other Value (Dasar Pengenaan Pajak/”DPP Nilai Lain”), which is set as Tax Basis at 11/12 of the import value, selling price, or compensation. This results of the calculation is in an effective VAT rate of 11%.
To comply with this rule in our AR invoices, we require IFS to facilitate the display of the Tax Basis as "11/12 of the selling price" and the VAT rate 12% within the invoice layout.