Portal for e-Commerce VAT Collectors

From 1 July 2020 Indonesian value-added tax (VAT) applies to sales of digital products supplied by foreign businesses to Indonesian consumers.

Examples of these sales include downloading or streaming of apps, books, computer software, games, magazines, movies, music, and newspapers, as well as the subscription of such products. Online services such as advertising, design, marketing, and video conferencing services are also examples of digital products covered by this measure.

Overseas businesses that make sales like those described above and meet certain criteria will be appointed as VAT collectors by the Indonesian Government and be responsible for:

• charging VAT on sales of digital products
• making a monthly payment to the Indonesian Government, and
• submitting a quarterly VAT return to the Indonesian Directorate General of Taxes (DGT)

• the value of transactions with buyers in Indonesia exceeds IDR 600,000,000.00 in 1 year or IDR 50,000,000.00 in 1 month; and / or
• the amount of traffic or access in Indonesia exceeds 12,000 in 1 year or 1,000 in 1 month.