Indonesia Issues Regulation on VAT Collection for E-Commerce Transactions

Indonesia's Directorate General of Taxation (DGT) has issued Regulation No. PER-12/PJ/2020 of 25 June 2020, which further regulates the new measures for the taxation of electronic transactions (referred to as "PMSE") with effect from 1 July 2020. This includes rules for the collection, deposit, and reporting of VAT on PMSE supplies from abroad to Indonesia consumers.

One of the key points of the Regulation is the threshold criteria for PMSE businesses to be appointed as a VAT (tax) collect…