Buying a new home in 2026? There is a chance the Value Added Tax (VAT) on your purchase will be borne by the government, lowering the price you actually pay. This facility is known as government-borne VAT (PPN DTP) on housing. This guide explains who qualifies, what the limits are, and what you need to do.
What Government-Borne VAT on Housing Is
Government-borne VAT on housing is a facility where the VAT otherwise payable on a home transfer is paid by the government rather than the buyer. Technically, VAT is still collected and reported by the developer as a Taxable Entrepreneur, but the payment burden is borne by the state through the budget (Article 16B of Law Number 8 of 1983 on VAT, as amended several times, most recently by Law Number 7 of 2021 on the Harmonization of Tax Regulations).
For fiscal year 2026, the facility is governed by Minister of Finance Regulation Number 90 of 2025 (PMK 90/2025). The rule continues a similar policy that ran in prior years.
Legal Basis
The 2026 housing VAT facility rests on two main pillars. First, the authority to grant a VAT facility is set out in Article 16B of the VAT Law (Law Number 8 of 1983 as amended by Law Number 7 of 2021). Second, the technical implementing rules for 2026 are set out in PMK Number 90 of 2025 on Government-Borne VAT on the Transfer of Landed Houses and Apartment Units for Fiscal Year 2026.
Amount and Price Cap
The amount of VAT borne by the government in 2026 is 100% of the VAT due on the portion of the selling price up to Rp2 billion. The facility applies to homes with a selling price of no more than Rp5 billion.
This means the mechanism is tiered. If the home price is up to Rp2 billion, all the VAT on that purchase is borne by the government. If the home price is above Rp2 billion up to Rp5 billion, only the VAT on the first Rp2 billion of the price is borne, while the remainder is subject to VAT normally.
| Home selling price | VAT borne by government |
|---|---|
| Up to Rp2 billion | 100% of the full price |
| Above Rp2 billion up to Rp5 billion | 100% of the first Rp2 billion portion |
| Above Rp5 billion | Not eligible |
Requirements to Qualify
For a home purchase to qualify for 2026 government-borne VAT, note the following conditions:
- The object is a new, ready-to-occupy landed house or apartment unit.
- The home is transferred for the first time by the developer and has never been transferred before.
- The facility applies once for one home unit per individual.
- The buyer may be an Indonesian citizen or a foreign national who meets property ownership rules in Indonesia, holding a Taxpayer Identification Number (NPWP) or National Identity Number (NIK).
- The home may not be transferred within one year of the handover.
How to Claim
In practice, the buyer does not arrange this facility directly with the tax office. The mechanism runs through the developer as a Taxable Entrepreneur. The general steps:
First, confirm the unit you are buying meets the object criteria (new, ready to occupy, price within the cap). Second, the developer issues a tax invoice for the home transfer with a special code marking the VAT as government-borne. Third, the developer reports the transfer in the periodic VAT return as required. As a buyer, keep your purchase documents, the sale and purchase binding agreement, and the tax invoice as proof of using the facility.
Worked Examples
Budi buys a new ready-to-occupy apartment for Rp1.8 billion from a developer in March 2026. Because the price is below Rp2 billion and meets all the requirements, the VAT on Budi's purchase is borne 100% by the government. With the 2026 VAT rate of 12%, roughly Rp216 million in VAT that would otherwise be payable is now borne by the state.
In a second case, Sari buys a new landed house for Rp4 billion. This price is above Rp2 billion but below Rp5 billion, so it still qualifies. The VAT borne by the government covers only the first Rp2 billion of the price. On the remaining Rp2 billion, Sari still bears the VAT normally.
Frequently Asked Questions
Can a used home get government-borne VAT?
No. The facility applies only to new, ready-to-occupy homes transferred for the first time by the developer and never transferred before.
How long does the facility last?
The housing government-borne VAT facility applies for a full one-year tax period, from January through December 2026, under PMK Number 90 of 2025.
Can one person use the facility for two homes?
No. The facility applies once for one home unit per individual.
What happens if the home is sold before one year?
One requirement is that the home is not transferred within one year of the handover. Violating this condition can void the right to a facility that has already been granted.