ndonesia’s Directorate General of Taxation (DGT) has published Notice No. SP-47/2020 of 17 November 2020, which lists the fifth batch of global companies that meet the criteria for collecting VAT on digital goods and services sold to consumers in Indonesia and have been appointed as such under Indonesia’s new measures for the taxation of digital products and services (referred to as “PMSE”). This includes the following 10 companies in addition to the 36 companies appointed earlier:
- Cleverbridge AG Corporation
- Hewlett-Packard Enterprise USA
- Softlayer Dutch Holdings B.V. (IBM)
- PT Bukalapak.com
- PT Ecart Webportal Indonesia (Lazada)
- PT Fashion Eservices Indonesia (Zalora)
- PT Tokopedia
- PT Global Digital Niaga (Blibli.com)
- Valve Corporation (Steam)
- beIN Sports Asia Pte Limited
With the appointment, digital products and services sold by these companies to consumers in Indonesia will be subject to VAT collection starting from 1 December 2020 at a rate of 10%. It is also noted that the DGT hopes that all companies meeting the criteria for VAT collection can take the initiative and inform the DGT so that the appointment process can be carried out immediately. The criteria include sales to Indonesian consumers of IDR 600 million per year or 50 million per month.
The Notice also provides links for further information regarding VAT on digital products and services, including an Indonesian-language version and an English-language version.
Source Orbitax – VAT on digital products and services
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