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Indonesia adds to VAT collector list as digital VAT receipts rocket

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:

  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.

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