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Jakarta to Collect 10 Percent Tax from Online Food Service

The Taxes DG of the Finance Ministry collected Rp15.68 trillion of value-added tax (VAT) from 161 actors of trade through the electronic system (PSME) or e-commerce as of October 31, 2023.

The Director of Public Relations Dwi Astuti mentioned that the number is an accumulation from 2020 to 2023, with Rp731.4 billion in 2020, Rp3.90 trillion in 2021, Rp5.51 trillion in 2022, and Rp5.54 trillion in 2023.

There were 161 e-commerce actors appointed as VAT collectors. “This is the same number as last month since the government has not appointed any in October 2023,” Dwi said in a written statement on Wednesday, Nov. 8.

Throughout October, Dwi said, the government conducted improvements on data elements in the appointment letter from IBM Cloud International B.V. and Tencent Music Entertainment Hongkong.

To boost the level playing field between e-commerce and conventional sellers, the government regulated e-commerce to collect VAT under the Finance Minister Regulation No. 60/PMK.03/2022.

“According to the regulation, the appointed [e-commerce] actors are obliged to collect 11 percent VAT for foreign digital products sold in Indonesia,” Dwi said. Collectors are also obliged to submit their proof in the form of commercial invoices, billing, order receipts, or other similar documents.

Dwi also said that the government will appoint more e-commerce actors to collect VAT. “The criteria for business actors appointed as e-commerce VAT collectors are those with Indonesian consumers with transactions more than Rp600 million per year or Rp50 million per month, and more than 12,000 Indonesian traffic a year or a thousand per month,” Dwi concluded.

Source: Tempo.co

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