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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