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.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

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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