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:
- the number of users in Indonesia;
- the number of payments (not including VAT);
- the amount of VAT collected; and
- 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.
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.
