DGT Supervises Foreign Online Travel Agents Who Haven't Paid Taxes

Online travel agent illustration (Photo: Doc. unsplash)

The Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) has confirmed that it will continue to monitor foreign online travel agents (OTA). Moreover, those who have not paid taxes.

Director of Counseling, Services and Public Relations of DGT Dwi Astuti explained that his party had appointed foreign OTA which had met the criteria for collecting value added tax (VAT) trading through electronic systems (PMSE).

"DJP will continue to carry out surveillance and periodically appoint digital economy business actors who have met the criteria as PMSE VAT collections," Dwi said quoting Antara.

He explained that the Regulation of the Minister of Finance (PMK) Number 60 of 2022 has regulated business actors appointed as mandatory collectors to collect taxes on digital products abroad sold in Indonesia. The collection evidence can be in the form of commercial invoices, billing, order receipts, or other documents that mention VAT collection and have been paid.

To date, the DGT has appointed several foreign OTAs as PMSE VAT collections, including Booking.com, Hotels.com, and Travelscape.

Meanwhile, for the aspect of income tax (PPh), Dwi said, his party is still waiting for developments in the implementation of Pilar 1 for Economic Cooperation and Development Organizations (OECD). The Pillar 1 OECD is a proposed solution from OECD/G20 to guarantee taxation rights and a fairer tax base in the context of the digital economy.

"All countries that are committed to these pillars are willing to postpone the implementation of PPh on the provision of digital goods and digital services," he said.

Previously, on Friday, March 8, the Ministry of Communication and Information warned foreign OTAs operating in Indonesia but had not followed the rules to register their services as PSE.

OTA registration provisions as PSE are listed in the Regulation of the Minister of Communication and Information Technology Number 10 of 2021 concerning Amendments to the Regulation of the Minister of Communication and Information Technology Number 5 of 2020 concerning Private Scope Electronic System Operators (PM Kominfo 5/2020).

The six OTA referred to by the Ministry of Communication and Information are Booking.com, Agoda.com, Airbnb.com, Klook.com, Trivago.co.id, and Expedia.co.id.

As of March 15, 2024, the Director General of Informatics Applications of the Ministry of Communication and Information, Semuel Abrijani Pangerapan, stated that the remaining two OTAs had not registered as PSEs, namely Klook.com and Trivago.co.id.