Indonesian Coffee Export Taxes & VAT: 2025 Pricing Guide

A practical, step-by-step playbook to apply the 0% VAT rate (PPN 0%) on Indonesian coffee exports, issue a compliant e-Faktur, and recover input VAT in 2025—plus a simple FOB pricing example, document checklist, and the pitfalls that trip up exporters.

If you export Indonesian coffee in 2025, VAT should be a competitive advantage, not a cost leak. The law gives exporters a 0% VAT rate, but you only get the benefit if your e-Faktur and export documents line up. We’ve seen great coffees lose margin because a PEB date didn’t match the invoice, or the exchange rate was wrong. Let’s fix that.

What taxes apply to coffee exports in 2025?

VAT (PPN): Exports of taxable goods are zero-rated. Your output VAT is 0% when the export is proven. Indonesia’s standard VAT rate increased to 12% in 2025, so your input VAT will often be 12%, but your export output VAT remains 0%.
Export duty: None on coffee beans. There’s no export duty on HS 0901 coffee in Indonesia.
PPh Article 22 on export: Not applicable to coffee beans. You’ll still handle corporate income tax in the normal way, but there’s no PPh 22 export collection for coffee.
Green vs. roasted: No difference for VAT treatment on export. Both are zero-rated if exported with proper proof.

Quick HS reference for classification and consistency across documents:

0901.11: Coffee, not roasted, not decaffeinated (green)
0901.12: Coffee, not roasted, decaffeinated
0901.21: Coffee, roasted, not decaffeinated
0901.22: Coffee, roasted, decaffeinated

Whether you’re shipping Blue Batak Green Coffee Beans or Arabica Java Ijen Grade 1 Green Coffee Beans, the zero-rating logic is the same. The difference is in your HS line and how precisely your docs match.

What documents prove an export so I can apply 0% VAT?

In practice, tax officers look for two things to support PPN 0%: a valid customs export filing and physical shipment evidence.

Document checklist we use:

PEB (Pemberitahuan Ekspor Barang) with status “Selesai Muat.”
Bill of Lading or Air Waybill showing vessel/flight and actual load date.
Commercial invoice and packing list that mirror the PEB quantities, HS code, and descriptions.
Export contract/PO. Useful to support pricing and Incoterms.
Optional but helpful: bank export proceeds receipt aligns with invoice value. It’s not a VAT requirement, but it calms queries.

In our experience, most rejections happen when PEB and BL dates don’t align with the e-Faktur period, or when descriptions/HS codes vary across documents. Keep them consistent.

How to create an e-Faktur for a zero-rated coffee export

We recommend issuing your e-Faktur after PEB shows “Selesai Muat” to avoid timing issues.

Step-by-step: Top-down desk scene with a laptop showing an invoice-style form next to PEB and bill of lading documents, a round ink stamp, pen, and a tray of green coffee beans, illustrating alignment of export paperwork for 0% VAT.

Create a 0% VAT export tax invoice in e-Faktur. Choose the export category for goods (BKP) with 0% rate.
Buyer details. For foreign buyers without Indonesian NPWP, e-Faktur allows non-NPWP recipients. Enter the buyer’s legal name and address exactly as on the commercial invoice.
Currency and DPP. Use IDR as the tax base. Convert your foreign currency price using the Ministry of Finance (Kurs Pajak) applicable on the invoice date. The DPP is your export value. Output VAT is 0.
Link the export. Input PEB number/date and BL/AWB number/date in the reference fields. Match the quantities and HS description to your PEB and packing list.
Issue date. Align the invoice date with the shipment period. We usually use the BL date or the PEB Selesai Muat date for clean reconciliation.
Upload and report. Ensure the e-Faktur is posted for the correct VAT period and reflected in your SPT Masa PPN.

Pro tip: Keep product descriptions lean and consistent. Example for green beans: “Arabica coffee, green, HS 0901.11, Sumatra Mandheling Green Coffee Beans.” Avoid marketing adjectives on the e-Faktur that don’t appear on your PEB.

Need a sanity check on your draft e-Faktur or DPP calculation? If your shipment straddles month-end, small tweaks matter. If you want us to review, just Contact us on whatsapp.

Can I refund the input VAT I paid on farm and processing costs?

Yes. Because your output VAT is 0%, your input VAT usually becomes an overpayment that can be credited forward or refunded.

What’s creditable:

VAT on beans purchased from PKP suppliers, processing fees, milling, packaging, inland freight, export handling. Make sure supplier invoices are valid e-Faktur.
Not creditable: VAT on non-business expenses, passenger vehicles, employee meals, and invoices issued to a different entity than the exporter.

Refund paths we’ve seen in 2025:

Accelerated refund for low-risk exporters. Preliminary refund can arrive in about 1–2 months if you qualify as low-risk. Thresholds and criteria apply.
Regular refund. Expect 3–9 months depending on your profile and region. The law provides a longer maximum window, but with clean records we rarely see the long end.

Three practical tips that move refunds faster:

Reconcile e-Faktur to PEB by shipment. A one-page matrix listing invoice number, PEB, BL, HS code, qty, and value does wonders during review.
Use the correct tax exchange rate. We’ve seen 3 out of 5 delays traced to using bank TT rates instead of the official Kurs Pajak.
Lock your suppliers. Ask core vendors to upload their e-Faktur on time and with precise descriptions. Mismatched supplier e-Faktur frequently triggers questions.

Pricing example: FOB coffee export without VAT

Let’s say you ship a 19,200 kg container of Sumatra Mandheling Green Coffee Beans at USD 4.80/kg, FOB Belawan.

Sales value: USD 92,160.
Tax exchange rate (example): IDR 16,000/USD.
DPP in IDR: 92,160 × 16,000 = IDR 1,474,560,000.
Output VAT: 0% of DPP = IDR 0.

Your inputs this month:

Milling, sorting, bags, inland logistics: IDR 420,000,000 + 12% VAT = IDR 50,400,000 VAT.
Packaging materials: IDR 120,000,000 + 12% VAT = IDR 14,400,000 VAT.
Total input VAT = IDR 64,800,000.

Result: You report export sales with 0 output VAT and claim IDR 64.8 million as overpaid input VAT. You can carry it forward or request a refund. If you’re a frequent exporter with good compliance, pursuing accelerated restitution often improves cash flow.

Takeaway: quote FOB prices without VAT, but build your cash flow model to account for the timing of input VAT recovery.

What if the shipment date slips past my invoice period?

We’ve all had vessels roll. If your e-Faktur is dated in May but your BL ends up June 2, the system may not “see” a matching export in May.

What we do:

If possible, cancel and reissue the e-Faktur in the actual shipment period once PEB is Selesai Muat. That preserves the 0% position cleanly.
If cancellation isn’t feasible, prepare a reconciliation file showing the timeline and final documents. Some auditors accept the linkage, but it’s a slower conversation.

The safest workflow is to issue the e-Faktur after the PEB is Selesai Muat and the BL date is known. This avoids the majority of zero-rating disputes.

Common mistakes that cost exporters money

Wrong exchange rate. Always use the Ministry of Finance’s tax rate for the invoice date, not your bank’s rate.
Description drift. Your e-Faktur says “Bali wine process,” your PEB says “green coffee.” Keep commercial descriptors for marketing. Use HS-grounded descriptions on tax and customs docs. For example, our Bali, Java, Gayo & Mandheling - Wine Green Arabica Coffee Beans still appear as green Arabica coffee under HS 0901.11 in customs and tax documents.
Issuing before shipment. If you invoice too early and the vessel rolls, expect reconciliation headaches.
Claiming non-creditable VAT. Passenger cars, staff meals, or invoices not in the exporter’s name routinely get cut from refunds.

Quick answers we’re asked every week

Do I need to charge VAT on coffee exported from Indonesia in 2025?

No. Exports are zero-rated when you have export proof.

What documents prove the export?

PEB with Selesai Muat status and a matching BL/AWB. Align value, quantity, HS, and dates across all docs.

How do I create an e-Faktur for a zero-rated export?

Use the 0% export category, convert to IDR with Kurs Pajak, link PEB and BL, and issue in the shipment period.

Can I refund the input VAT I paid?

Yes. You can credit it forward or claim a refund. Low-risk exporters often get prelim refunds in 1–2 months.

How long do VAT refunds take in 2025?

We’re seeing 1–2 months for low-risk preliminary refunds, and 3–9 months for regular cases with clean files.

Is there any export duty or PPh 22 on coffee beans?

No export duty. No PPh 22 collection on coffee exports.

Does treatment differ for green vs roasted coffee?

Both are zero-rated on export. Just use the correct HS line.

Final take

The 0% VAT on exports is straightforward on paper and unforgiving in practice. If your e-Faktur, PEB, and BL tell the same story, you’ll keep VAT out of your prices and cash your refunds faster. If you want a second pair of eyes on a live shipment or a refund file, Contact us on whatsapp. And if you’re building a 2025 sourcing calendar, you can also View our products to benchmark quality and HS classifications against your market needs.

One last thought. In 2025 we’re seeing tighter cross-checks between tax and customs data. That’s good for serious exporters. Keep your documents consistent, and the 0% VAT works exactly as intended.