JAKARTA. The Directorate General of Taxes (DGT) officially designated a number of global digital companies to collect Value Added Tax (VAT) on the sale of goods and services to their customers in Indonesia. These companies are Amazon Web Service Inc, Google Asia Pacific Pte. Ltd, Google Ireland Ltd, Google LLC, Netflix International B. V and Spotify AB.
These companies are known as companies that provide goods and services in digital form, such as advertising services, video content and audio content.
The six companies are deemed to have fulfilled the criteria as the VAT collector on Trade Throug Electronic Systems (PMSE) or e-commerce. The criteria of e-commerce VAT collection company beforehand have been stipulated in the Director General of Taxes Regulation number PER-12 / PJ / 2020.
Some criteria that must be fulfilled include a minimum transaction value of IDR 600 million a year or IDR 50 million a month. Or at least, the digital company has been accessed by more than 12,000 visitors in a year or 1,000 visitors in one month
Read: Criteria for VAT-Collecting Digital Companies Determined
With this appointment, starting on 1 August, 2020, transactions for the use or purchase of Google, Amazon, Netflix and Spootify goods and services will be subject to a VAT of 10% of the selling price of the goods or services. The witholding VAT must be stated in the receipt or proof of payment issued.
In order for the e-commerce VAT payment to be credited, the buyer or service user whose status is VAT- Registered Persons (PKP) must provide the name and Taxpayer Identification Number (NPWP) to the buyer. The identity will later be included in the VAT collection evidence (bukti pungut) issued by the company. If not, at least the VAT collection evidence contains the same email address as the registered email address at the DGT.
For the collection of VAT, the designated digital company obligedbto deposit the VAT that collected in each tax period, not more than the end of the following month after the tax period ends. VAT deposits are made electronically to the state treasury account through a perception bank, perception post or other perception institution in Indonesia, using a billing code.