Appointed non-resident digital service providers help quadruple VAT receipts to over $270m
Indonesia has added a further seven VAT collectors at the end of 2021 to the list of non-resident providers of digital services who must charge and remit tax on provision of electronic services to consumers.
This brings the total to 94 since the Indonesia levied VAT on digital services on 1 July 2020. Tax receipt from digital services VAT income increased from IDR 731 billion to over IDR 3,900 billion (approx €240k).
VAT compliance obligations
Indonesia introduced VAT on digital services from foreign providers and facilitating marketplaces on 1 August 2020. This included a two-test VAT registration threshold:
- Turnover of IDR600m per year; and, or
- Over 12,000 Indonesian customers
The Directorate has since nominated each month larger taxpayers that it would require to VAT register. This included the headquarters and many subsidiaries of the biggest providers from around the world. This number is now 73 following this latest round.
Registered providers are expected to submit quarter VAT returns. An annual transactions breakdown is required, too. However any VAT due should be paid monthly and may settle their liabilities in US$.
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.
VAT returns in Indonesia or anywhere globally can be challenging, but 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 $75,000|
|Armenia||20%||Jan 2022||AMD 115million|
|Bangladesh||5% - 15%||Jul 2019||–||B2B and B2C|
|Bhutan||7%||Jul 2021||Nu 5million|
|Cambodia||10%||Mar 2022||KHR 250m|
|China||6%-13%||N/a||Nil||Withholding VAT; B2B and B2C|
|Indonesia||11%||Aug 2020||IDR600m or 12k customers|
|Japan||10%||Oct 2015||JPY 10 million|
|Laos||7%||Feb 2022||LAK 400m|
|Nepal||13%||Jul 2022||Rupees 2m||Also 2% DST|
|New Zealand||15%||Oct 2016||NZD 60,000|
|Pakistan||2%||Sep 2021||Nil||Marketplace Withholding VAT|
|Philippines||12%||Jul 2023 ?||P 3million|
|Singapore||7%||Jan 2020||S$ 100,000|
|South Korea||10%||Jul 2015||Nil|
|Taiwan||5%||May 2017||NTD 480,000|
|Thailand||7%||Sep 2021||1.8m Baht|