VAT Changes Under the HPP Law RE: Foreign e-Commerce

Date of Post

May 11, 2022

Written by

lemonadecares

The VAT mechanism for foreign e-commerce supplies was introduced in Law No.2 of the Year 2020 and its implementing regulations MoF Regulation No.48/PMK.03/2020 (“PMK-48”) and DGT Regulation No. PER-12/PJ/2020 (“PER-12”).

The MoF has now issued Regulation No. 60/PMK.03/2022 (“PMK-60”) provides more detail on the scope of VATable transactions and e-commerce rules for VAT Collectors as well as for VAT compliance (i.e. registration, collection, payment). These rules are largely the same as in PMK-48 and PER-12. PMK-60 confirms that the VAT rate to be used for foreign e-commerce transactions follows the prevailing VAT rate.  PMK-60 also stipulates that the MoF Decree regarding the appointment of foreign e-commerce VATable Entrepreneurs (Pengusaha Kena Pajak/”PKP”) as outlined in PMK-48 and PER-12 remains valid until a further MoF Decree. PMK-60 further stipulates that the VAT due on transactions between foreign providers and users in Indonesia through a foreign or domestic e-commerce marketplace can be collected by foreign e-commerce players or domestic e-commerce marketplaces. This is where they are appointed as e-commerce VAT Collectors and are issuing commercial invoices, billings, order receipts, or similar documents.

VAT reporting

E-commerce VAT Collectors must submit a quarterly report which provides the following information:

  1. the number of users in Indonesia;
  2. the number of payments (not including VAT);
  3. the amount of VAT collected; and
  4. details of the VAT transactions which cover at least the following information: (new)
    • the number and date of each VAT collection slip;
    • the amount of payment (not including VAT) for each VAT collection slip;
    • the amount of VAT collected for each VAT collection slip; and
    • the name and Tax ID of users in Indonesia if the information is provided in the VAT collection slip.
Read More:  VAT Changes under the HPP Law RE: “Final” VAT Regime

Previously details of collected VAT transactions were only required when requested by the DGT. Under PMK-60, the DGT can still request these details where the DGT application/system is not ready although the details, as per point d above, will be replaced with the amount of VAT remitted.

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