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Indonesia Appoints Fourth Batch of VAT Collectors for New Rules on Taxing Digital Goods and Services — Orbitax Tax News & Alerts

Indonesia's Directorate General of Taxation (DGT) has published Notice No. SP-43/2020 of 9 October 2020, which lists the fourth 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 8 companies in addition to the 28 companies appointed earlier:

  • Alibaba Cloud (Singapore) Pte Ltd
  • GitHub, Inc.
  • Microsoft Corporation
  • Microsoft Regional Sales Pte. Ltd.
  • UCWeb Singapore Pte. Ltd.
  • To The New Pte. Ltd.
  • Coda Payments Pte. Ltd.
  • Nexmo Inc.

With the appointment, digital products and services sold by these companies to consumers in Indonesia will be subject to VAT collection starting from 1 November 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.