Buying Goods On Amazon et al Must Pay 10 Percent Tax, What Is The Scheme?

JAKARTA - The Directorate General of Taxes (DGT) has decided to collect Value Added Tax (PPN) of 10 percent on trade through an electronic system (PMSE) of digital products that are sold to customers in Indonesia.

Director of Counseling, Services and Public Relations of DGT Neilmaldrin Noor said this latest provision applies to four business actors from abroad, namely Amazon.com, Image Future Investment (HK) Limited, Dropbox International Unlimited Company, and Freepik Company.

"With this appointment, since April 1, 2021, these business actors will begin to collect VAT on digital products and services they sell to consumers in Indonesia", he said as quoted from the official website, Wednesday, March 31.

Neilmaldrin added that 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.

"DGT continues to identify and conduct socialization to a number of other companies that sell digital products abroad to Indonesia. It is hoped that in the near future the number of business actors appointed as VAT collectors for digital products will continue to grow", he said.

To note, the criteria for entities appointed by the government to collect PMSE VAT is to have a digital product sales transaction value to buyers in Indonesia exceeding IDR 600 million in one year or IDR 50 million in one month.

In addition, if the number of traffic or access in Indonesia exceeds 12.000 in one year or 1.000 in a month, it can be appointed as a value-added tax collector.

With the aforementioned criteria, the appointment of a VAT collector is based solely on the amount of transaction value with buyers in Indonesia, or the amount of traffic or accesses from Indonesia regardless of the domicile or jurisdiction of the domicile of the business actor.

With the addition of the four newest companies, the total number of PMSE VAT collectors who have been appointed by the DGT will be 57 business entities. Here is the complete list.

1. Netflix International BV

2. Spotify AB

3. Google LLC

4. Google Ireland Limited

5. Google Asia Pacific Pte. Ltd.

6. Amazon Web Services, Inc.

7. Facebook Ireland Limited

8. Facebook Payments International Limited

9. Facebook Technologies International Limited

10. Amazon.com Services LLC

11. Alexa Internet

12. Audible Limited

13. Audible, Inc.

14. Apple Distribution International Limited

15. Tiktok Pte. Ltd.

16. The Walt Disney Company (Southeast Asia) Pte. Limited

17. PCCW Vuclip (Singapore) Pte. Ltd.

18. Skype Communications Sarl

19. Mojang AB

20. LinkedIn Singapore Pte. Ltd.

21. Microsoft Ireland Operations Limited

22. Twitter Asia Pacific Pte. Ltd.

23. Twitter International Company

24. Zoom Video Communications, Inc.

25. McAfee Ireland Ltd.

26. PT Jingdong Indonesia First

27. PT Shopee International Indonesia

28. Novi Digital Entertainment Private Limited

29. Alibaba Cloud (Singapore) Private Limited

30. GitHub, Inc.

31. Microsoft Corporation

32. Microsoft Regional Sales Pte. Ltd.

33. UCWeb Singapore Pte. Ltd.

34. Coda Payments Pte. Ltd.

35. To The New Private Limited

36. Nexmo Inc

37.Cleverbridge AG Corporation

38. Hewlett-Packard Enterprise USA

39. Softlayer Dutch Holdings BV

40. PT Ecart Webportal Indonesia

41. PT Bukalapak.com

42. Valve Corporation

43. PT Tokopedia

44. PT Global Digital Niaga

45. beIN Sports Asia Pte Limited

46. Etsy Ireland Unlimited Company

47. Proxima Beta Pte. Ltd.

48. Tencent Mobility Limited

49. Tencent Mobile International Limited

50. Snap Group Limited

51. Netflix Pte. Ltd.

52. Nordvpn SA

53. eBay Marketplace GmbH

54. Amazon.com.ca, Inc

55. Image Future Investment (HK) Limited

56. Dropbox International Unlimited Company

57. Freepik Company SL