Last updated on April 19th, 2022 -
What’s new with Indonesia’s taxation law
As an international retailer selling to Indonesia ??, if you sell over 600 million rupiah (IDR) annually or if your website traffic exceeds 12,000 per year, you may be appointed by the Indonesia Director-General of Tax as a VAT collector. As of August 1, 2020, the Indonesian government does not clearly state whether or not an ecommerce business falls under the criteria of a VAT collector.
What to do if you’re above the 600m threshold?
If you’re above the threshold and appointed by the Indonesian government, the Director-General of Tax will reach out and provide you with further instructions to activate your account, update your data, etc. Once you complete this, your appointment as a VAT collector will be effective.
All VAT collectors must collect, report, and pay 10% multiplied by the Tax Imposition Base, which is the amount paid by the buyer (not including the VAT). The VAT applies to all intangible goods and taxable services.
How likely am I to be appointed as a VAT collector?
It most likely doesn’t. The Director-General of Tax has only appointed six companies as VAT collectors. These companies include Netflix, Spotify, Amazon, and Google.
If you are appointed, click here to learn more about how it will affect you, steps you should take, and how Zonos can help.
What if I become a VAT collector for the Indonesian tax laws?
Sit tight! If you are appointed as a VAT collector, the Indonesia Director-General of Tax will reach out to you directly and provide you with further instructions.
How Zonos can help
Are you covered for taxation in Indonesia? Zonos duty and tax solutions can help. We’re here ready to assist with managing the Indonesian tax law and any similar law that may go into effect, including New Zealand’s GST and Australia’s GST taxation laws, and the Norway VOEC scheme.
- Zonos Hello can help inform Indonesian customers when they won’t pay any duty or VAT.
- We can also collect tax at checkout for Indonesian customers.
- We will continue to keep our customers informed on the latest updates to the Indonesian tax law along with any other country taxation updates.
Additional resources
Feel free to contact us, or check out the links below for further reading.
- Indonesian Tax Law – Learn more in our Zonos Docs.
- Lexology: Indonesia Government regulation – Read more about the tax laws in Indonesia.
Looking for tax and duty solutions for your global business? Zonos can help. Zonos International Checkout easily integrates with your site and gives you a smarter checkout by calculating a total landed cost (including duty, taxes, plus all the carrier fees) based on the de minimis. It also includes global payments, use your own shipping carrier, fraud coverage, localized checkout fields, denied party screening, and country restrictions.
Zonos Landed Cost will calculate import duty and tax with carrier fees, de minimis values, and HS code support within your platform or checkout. Zonos has landed cost plugins for ecommerce platforms as well as custom solutions using Zonos APIs.
You can also try our free Zonos Hello to provide de minimis information to your international shoppers while they browse your site.
Zonos Quoter allows you to get instant duty and tax quotes to make your life easier.
