Indonesia confirms VAT on foreign e-commerce from 1 September 2020

1 September 2020

From 1 September 2020, the Indonesian tax authorities will introduce VAT at 10% on all e-services transactions made by non-resident companies.

Currently, non-resident businesses providing e-services to Indonesia do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Indonesian resident providers, the Indonesian government will introduce VAT at 10% on these types of transactions from September 2020.

The tax authorities also confirmed that the new tax must be charged and collected by the non-resident suppliers who will have a requirement to VAT register when they:

  • Exceed annual sales of IDR 600 million (approx.. £30k) per annum; or
  • Sell to more than 12,000 Indonesian consumers per annum.

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We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

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