Indonesia to Make Marketplaces Collect VAT on Online Sales

• Indonesia will require e-commerce marketplaces to collect VAT on merchants’ online sales starting in July.
• The government says this is not a new tax, but a change in how existing VAT is collected.
• The policy aims to improve tax compliance, transparency, and government oversight of the digital economy.
• It also seeks to create fairer competition between online sellers and traditional brick-and-mortar retailers.
• Marketplace operators will act as VAT collectors, reducing reliance on individual merchants’ voluntary compliance.

Source: jakartaglobe.id

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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