Starting December 1, Online Shopping In E-commerce Will Be Subject To 10 Percent VAT

JAKARTA - The Directorate General (DG) of Taxes will collect value added tax (VAT) in a number of marketplaces, starting December 1, 2020. Thus, all consumers who purchase goods / services online will be taxed 10 percent of the purchase price.

Director of Counseling, Services and Public Relations, DJP Hestu Yoga Saksama, said that these companies have met the criteria to collect VAT on digital goods and services sold.

The regulation is based on Government Regulation in Lieu of Law (Perppu) Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Handling the Corona Virus Disease (Covid-19) Pandemic.

"With this appointment, since December 1, 2020, these business actors will begin to collect VAT on digital products and services they sell to consumers in Indonesia," said Hestu in his official statement, Wednesday, November 18.

Hestu details companies that are now VAT collectors, namely Bukalapak, Tokopedia, Zalora, Blibli.com, Lazada, Valve Corporation (Steam), beIN Sports Asia Pte Limited, Cleverbridge AG Corporation, Hewlett-Packard Enterprise USA, and Softlayer Dutch Holdings. BV (IBM).

He explained that the marketplace is a domestic taxpayer who is appointed as a collector. So, VAT collection is only carried out on the sale of digital goods and services by foreign sellers who sell through the marketplace.

"DGT continues to identify and actively establishes communication with a number of other companies selling digital products abroad to Indonesia to socialize and find out their readiness," he said.

With the addition of these 10 new companies from Tokopedia cs, a total of 46 companies in the country have received VAT collector status for domestic digital transactions. Previously, Netflix, Zoom, and Shopee had already collected this tax because it was determined by the DGT.