Vat on Digital Services Indonesia

Finally, the Directorate General of Tax (DGT) has issue the implementation of VAT Collection on Digital Transactions (PER 12/PJ/2020) that sale to Indonesian customers. This regulation, will be effective from 1st of July 2020.

On the first announcement, the DGT has appointed 6 (six) entity to become VAT Collectors as mentioned in DGT’s Press Release

All the appointed entities will start to collect VAT starting 1 August 2020. The VAT rate will be imposed on the sales is 10% from the price before tax.

For the others international sellers or other service providers will be appointed by the DGT, if they exceed the thresholds in 12 months period.

In the regulations also stated the some conditions that trigger for DGT to appoint international sellers or providers to become VAT collectors as follows:

  • Transaction values of US$42,000 per year or US$3,500 per month. (IDR 600 Mio/year or IDR 50 Mio/month)
  • Traffic or access numbers of 12,000 per year or 1,000 per month.

However, DGT for the company which have not been identified to become VAT collectors, it may voluntary register if the company exceed the above conditions.

The reporting obligation for VAT collectors must pay the VAT by the end of the following month and must submit quarterly report which provide at least:

  • number of users in Indonesia;
  • amount of payments;
  • amount of VAT collected; and
  • amount of VAT settled to government.

In the regulation, the DGT may also request the detailed VAT report for each calendar year (annual) with consist of at least :

  • number and date of VAT collection slips;
  • amount of payments on every collection slips;
  • amount of VAT collected;
  • name and Tax ID of users in Indonesia’s Customs Area if the information is provided in the VAT collection slip;
  • Phone number, email address or any other customer’s identity.

All the reporting will be submitted via electronics tax filling system that provided by DGT.

Please send us email for further details.

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