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Indonesia Mandates VAT and Reporting for Online Marketplaces in Cross-Border Digital Sales

  • Online marketplaces in Indonesia may need to charge and remit VAT for cross-border digital sales, but the law is unclear on which platforms are affected.
  • Marketplaces are required to report all vendor transactions to tax authorities.
  • The rules are designed to strengthen VAT collection and increase transparency for digital sales to Indonesian consumers.
  • A marketplace operator is an entity that enables overseas merchants to sell digital products to Indonesian customers.
  • Marketplaces must maintain transaction records and report vendor sales to the Directorate General of Taxes.
  • The measures aim to improve tax collection from digital cross-border sales and increase transparency.

Source: fiscal-requirements.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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