30 April 2020
On 1 April 2020, the Indonesian tax authorities introduced VAT at 10% on all e-commerce goods and service transactions made by non-resident companies.
Prior to this, non-resident businesses providing e-commerce supplies to Indonesia did not have to charge VAT on their sales. However, to remove the unfair advantage that this gave to non-resident companies over Indonesian resident providers, the Indonesian government introduced VAT at 10% on these types of transactions.
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.