Tax Base (DPP)
The Tax Base (DPP) is the selling price, compensation, import value, export value, or other value used to compute VAT due. Governed by Article 1 paragraph 17 and Article 8 of the VAT Law. Typically, DPP equals the selling price excluding VAT. For specific transactions, DPP uses alternative values set by the Minister of Finance (PMK No. 75/PMK.03/2010), such as for used motor vehicles, travel agencies, courier services, or disposal of assets not originally intended for sale.
This article is for education, not tax advice.
Example
A PKP sells goods for Rp 110 million (VAT-inclusive at 11%). DPP = Rp 110 million / 1.11 = Rp 99,099,099. VAT = Rp 99,099,099 x 11% = Rp 10,900,901.
Source: Article 1 paragraph 17 and Article 8 UU PPN; PMK No. 75/PMK.03/2010
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