1st January VAT rise to 12% but only on luxury goods The Indonesian government has increased the Value Added Tax rate from 11% to 12% from a January 2025 on luxury goods only – applicable to certain goods and services. To support the less-well-off, the
Money transfer services via payment wallets do not enjoy Financial Services exemption. Also imposing VAT on crypto asset trading transactions Indonesia’s Finance Ministry has confirmed the financial tech companies offering digital wallet services will be subject to charging standard rated VAT. This will apply from
Appointed non-resident digital service providers help quadruple VAT receipts to over $270m Indonesia has added a further seven VAT collectors at the end of 2021 to the list of non-resident providers of digital services who must charge and remit tax on provision of electronic services
More services to be brought into Value Added Tax regime Indonesia is looking to reform its Value Added Tax regime following the widening of its deficit to GDP to over 6%. It has already announced a possible rise in Indonesia VAT. The possible reforms would seek
Indonesia has put forward a proposal to raise its standard VAT rate from the current 10% to up to 15%. This is aimed at stablishing government deficits which have widened during the coronavirus crisis. The government deficit is now exceeding 6% of GDP. The exact
The Indonesian Directorate General of Taxes has added a further two foreign entities to the VAT on digital services Trading Through the Electronic System scheme. This takes the total to 83 non-resident providers of digital or e-services to Indonesian consumers. So far, the DG has
Additional non-residents required to register for VAT on electronic services The Indonesian Directorate General of Tax has co-opted a further ten new non-resident providers of digital services to tax on the role of VAT collector. In a communique, it confirmed the following for the latest
