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Indonesia 70+ foreign digital service providers registered for VAT

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. 1 June collection start date;
  2. 10% VAT rate on digital products; and
  3. 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:

  1. Turnover of IDR600m per year; and, or
  2. 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 $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
Nepal 13% Jul 2022 Rupees 2m Also 2% DST
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% TBC P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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