New concept of permanent establishment for international sellers, service providers, or international e-commerce platforms

Such businesses that actively offer and/or conduct activities with consumers domiciled in Indonesia may be deemed to have a PE in Indonesia if they exceed certain thresholds.
Certain international sellers, international service providers, and international and local e-commerce platform provider companies will be required to collect 10% VAT from Indonesian customers for the supply of intangible goods or services from outside Indonesia. The Minister of Finance will issue regulations providing the criteria and mechanics of the VAT collection mechanism and will confirm whether this measure will be administered directly or via Indonesian agents.

Source: EY



  • VAT
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