Indonesia: New regulations for VAT on digital transactions
Indonesia has issued new regulations that call for the expansion of VAT to include cross-border digital transactions. According to the new rules, international companies that sell digital goods and services to Indonesian consumers will be appointed as a “VAT collector” if they exceed the following thresholds within a 12 month period:
- The total value of transactions with users in Indonesia exceeds IDR 600 million in one year or IDR 50 million in one month
- The amount of transactions exceeds 12,000 users in one year, or 1,000 users in one month
Companies that have been appointed as a VAT collector must collect VAT at a rate of 10 percent. Payments must be deposited to the state treasury on a monthly basis.