e-Commerce Platform Will Collect VAT and Merchant Income Tax

Wednesday, 26 October 2022

e-Commerce Platform Will Collect VAT and Merchant Income Tax

JAKARTA. The Directorate General of Taxes (DGT) is preparing a regulation that will make e-commerce a tax collector from merchants or online shop owners.

Quoting, there are two types of taxes that will be collected by e-commerce from online shop sellers, namely Value Added Tax (PPN) and Income Tax (PPh).

Therefore, this rule will complement the provisions regarding the collection of VAT that are currently in effect, in which those who are entitled to collect VAT are taxpayers who have been confirmed as VAT-Registered Persons.

Doing a Trial

Later, the collection of VAT on trade at e-commerce will not only need to be carried out by VAT-registered persons but by merchants and partly by e-commerce.

Not just preparing the legal umbrella, the government has even started to test the policy. The results will be reviewed later to be incorporated into regulations.

However, before it is actually written into official regulations, the government will consider several things, such as social, economic and political factors.

Another thing that the government must prepare is another more detailed provision such as the procedure for reporting VAT collections.

Small Entrepreneurs are Exempted

In addition, the government also guarantees that this policy will not harm small entrepreneurs who sell their products on e-commerce platforms.

This is because the policies that will be made will be in line with the current regulation regarding the tax obligations of Micro, Small and Medium Enterprises (MSMEs).

Namely related to the gross revenue of MSMEs of IDR 500 million and below will be exempted from the obligation to pay income tax.


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