DGT Increases the Number of VAT Collectors for Foreign Digital Content

JAKARTA. The Director General of Taxes (DGT) increases the number of Value Added Tax (VAT) collectors on foreign digital content sold to Domestic Taxpayers or their consumers in Indonesia.

In a written statement, DGT announced that there were ten companies that had registered and received tax identification numbers as VAT collectors for foreign digital content.

The ten digital companies include Facebook Ireland Ltd, Facebook Payments International Ltd, Facebook Technologies International Ltd, Amazon.com Service LLC, Audible Inc, Audible Ltd, Alexa Internet, Apple Distribution International Ltd, Tiktok Pte.  Ltd, and The Walt Disney Company (Southeast Asia) Pte.  Ltd.

Thus, these companies will collect VAT from 1 September, 2020 at 10% of the pre-tax content price. The collection must be included in the receipt or invoice issued by the seller as VAT collection evidence.

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Previously, DGT had appointed six global digital companies to collect VAT on content sold to the Indonesian public. The six companies include Amazon Web Service Inc, Google Asia Pacific Pte.  Ltd, Google Ireland Ltd, Google LLC, Netflix International B.V and Spotify AB.

As for the criteria of vat collector of PMSE (Trade Through Electronic Systems) company, it has previously been regulated in Regulation of the Director General of Taxation number PER-12/PJ/2020.

Some criteria that must be met include having 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 one year or 1,000 visitors a month.

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In order for the PMSE VAT payment to be credited, the buyer or service user who is a VAT-Registered Persons (PKP) must notify the buyer the name and Taxpayer Identification Number (NPWP).

This identity will later be included in VAT collection evidence issued by the company.  If not, at least VAT collection evidence contains the same email address as the email address registered with the DGT.

For this VAT collection, the designated digital company is obliged to deposit the VAT it collects every tax period, no later 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.