LinkedIn To Shopee Will Be 10 Percent Taxable From October 1

JAKARTA - The Director General of Taxes (DJP) of the Ministry of Finance reminded that starting October 1, digital service transactions by consumers will be subject to value added tax (VAT). A total of 12 outside companies that provide digital services are ready to collect VAT.

Hestu Yoga Saksama, Director of Counseling, Services and Public Relations, said the 12 companies had met the criteria as value added tax collectors on digital goods and services sold to customers in Indonesia.

"The amount of VAT that customers must pay is 10 percent of the pre-tax price, and must be included on the receipt or invoice issued by the seller as proof of VAT collection," he said, in a written statement received by VOI, Wednesday, September 9.

Furthermore, Hestu said, the 12 companies as of October 1 were entitled to collect VAT on transactions made by consumers, in addition to the 16 other companies that were previously appointed as VAT collectors. So a total of 28 companies are ready to collect VAT on services and goods purchased by consumers.

Hestu ensures that the number of companies that can collect 10 percent VAT will increase again, because the DGT is identifying a number of other companies that sell products and services to domestic consumers.

According to Hestu, DGT is also communicating with a number of other companies that sell digital products abroad to Indonesia. The goal is to conduct socialization and find out their readiness to collect VAT.

Of the 12 appointed companies, there are a number of marketplaces such as PT Shopee International Indonesia and PT Jingdong Indonesia Pertama or JD.ID. However, DGT provides special rules for collectors who are the domestic taxpayer marketplace.

"Especially for marketplaces that are domestic taxpayers who are then appointed as collectors, VAT collection is only carried out on the sale of digital goods and services by foreign sellers who sell through the marketplace," he said.

These companies are as follows:

1. LinkedIn Singapore Pte. Ltd.

2. McAfee Ireland Ltd.

3. Microsoft Ireland Operations Ltd.

4. Mojang AB

5. Novi Digital Entertainment Pte. Ltd.

6. PCCW Vuclip (Singapore) Pte. Ltd.

7. Skype Communications SARL

8. Twitter Asia Pacific Pte. Ltd.

9. Twitter International Company

10. Zoom Video Communications, Inc.

11. PT Jingdong Indonesia First

12. PT Shopee International Indonesia