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 round of registrants:
- 1 June collection start date;
- 10% VAT rate on digital products; and
- documentation and invoice requirements for VAT and input credits.
Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
Indonesia introduced VAT on digital services from foreign providers and facilitating marketplaces on 1 August 2020. This included a two-test VAT registration threshold:
- Turnover of IDR600m per year; and, or
- Over 12,000 Indonesian customers
The Directorate has since nominated each month larger taxpayers that it would require to VAT register. This included the headquarters and many subsidiaries of the biggest providers from around the world. This number is now 73 following this latest round.
Registered providers are expected to submit quarter VAT returns. An annual transactions breakdown is required, too. However any VAT due should be paid monthly and may settle their liabilities in US$.
The taxable supplies include: streaming or download media; apps; cloud services; e-books; subscriptions to online news or journals; membership to online clubs; and gambling.
If you need to complete returns, our VAT Filer can accurately populate any country submission with verified VAT or GST data from our VAT Calculator or VAT Auditor services
Asia Pacific VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Australia | 10% | Jul 2017 | AUD $75,000 | |
| Azerbaijan | 12% | Jan 2017 | – | |
| Armenia | 20% | Jan 2022 | AMD 115million | |
| Bangladesh | 5% - 15% | Jul 2019 | – | B2B and B2C |
| Bhutan | 7% | Jul 2021 | Nu 5million | |
| Cambodia | 10% | Mar 2022 | KHR 250m | |
| China | 6%-13% | N/a | Nil | Withholding VAT; B2B and B2C |
| Fiji | 9% | TBC | FJD 300,000 | |
| India | 18% | Jul 2017 | - | |
| Indonesia | 11% | Aug 2020 | IDR600m or 12k customers | |
| Japan | 10% | Oct 2015 | JPY 10 million | |
| Kazakhstan | 12% | Jan 2022 | Nil | |
| Kyrgyzstan | 12% | Jan 2022 | Nil | |
| Laos | 10% | Feb 2022 | LAK 400m | |
| Malaysia | 8% | Jan 2020 | RM500,000 | |
| Nepal | 13% | Jul 2022 | Rupees 2m | Also 2% DST |
| New Zealand | 15% | Oct 2016 | NZD 60,000 | |
| Pakistan | 2% | Sep 2021 | Nil | Marketplace Withholding VAT |
| Palau | 10% | Jan 2023 | $300,000 | |
| Philippines | 12% | 2024 ? | P 3million | |
| Singapore | 9% | Jan 2020 | S$ 100,000 | |
| South Korea | 10% | Jul 2015 | Nil | |
| Sri Lanka | 18% | 2025? | LKR 60m | Proposals only |
| Taiwan | 5% | May 2017 | NTD 480,000 | |
| Tajikistan | 14% | Jan 2021 | ||
| Thailand | 7% | Sep 2021 | 1.8m Baht | |
| Uzbekistan | 12% | Jan 2020 | Nil | |
| Vietnam | 10% | Dec 2020 | – |
