Indonesia postpones VAT on foreign e-commerce to 1 August 2020

30 June 2020

The Indonesian tax authorities have postponed the introduction of VAT at 10% on all e-commerce goods and service transactions made by non-resident companies to 1 August 2020.

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

The tax authorities also confirmed that the new tax must be charged and collected by the non-resident suppliers, who will have to register for VAT in the country.

Fiscal Solutions are highly experienced in understanding the complexities of e-commerce VAT and can help your business maintain compliance.

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.

E-commerce VAT

Let us solve your current business VAT challenges

READ MORE

E-commerce VAT

READ MORE

VAT registration

READ MORE
LATEST NEWS

Slovakia considers lowering VAT Rates and expanding...

The Slovakian parliament is currently reviewing draft bills that will expand the list of goods eligible for the 5% reduced VAT rate to include additional food...

SEE MORE
VAT news
LATEST NEWS

UPDATE: Philippines implements VAT on e-services...

The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services...

SEE MORE
VAT news
LATEST NEWS

European Commission grants extension of VAT split...

Despite deviating from Article 226 of Directive 2006/112/EC of the EU VAT Directive, Poland has been allowed to carry on using their VAT split payments regime...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.