1 August 2019
A VAT bill is currently being reviewed by the Indonesian government that will introduce VAT at 10% on all e-commerce goods and service transactions made by non-resident companies.
At present, non-resident businesses providing e-commerce supplies to Indonesia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Indonesian resident providers, the Indonesian government are planning to introduce VAT at 10% on these types of transactions.
If introduced the new tax will be charged and collected by the non-resident suppliers, who will likely have to register for VAT in the country.