E-Commerce Taxation in Indonesia

In the 2018 SEA e-Conomy report on the results of research conducted by Google and Temasek it was concluded that the Gross Merchandise Value (GMV) of the e-Commerce industry in Southeast Asia for 2018 was US $ 23.2 billion. As for that number, US $ 12.2 billion came from Indonesia. In other words, more than 50% of e-commerce industry transactions in Southeast Asia come from our country. (Cahyani, Tempo, 2018).

The Indonesian government as a regulatory body did not remain silent. Seeing the increasing potential of the e-Commerce market in the country, on December 31, 2018, through the Ministry of Finance, the Government issued tax regulations regarding E-Commerce transactions Number 210 / PMK.010 / 2018 which took effect on April 1, 2019.

The regulation further stipulates the taxation regarding Value Added Tax (VAT), Sales Tax on Luxury Goods (PPnBM), Import Duty and/or Tax In The Course of Periodic Import (PDRI).

For tax administration purposes, this regulation stipulates that Marketplace Platform Providers must have a Taxpayer Identification Number (NPWP) and must be confirmed as a Taxable Entrepreneur (PKP) even though it fulfills the criteria as small-scale entrepreneur. Furthermore, Marketplace Platform Providers must also implement Income Tax obligations in accordance with the provisions of laws and regulations in Income Tax sector. While, Trader or Service Provide must register itself to obtain NPWP or must notify Single Identity Number (Nomor Induk Kependudukan – NIK) to Marketplace Platform Provider, in the event that Trader or Service Provider does not yet have NPWP and have no obligation to become a Taxable Entrepreneur as long as their total income does not exceed IDR 4.800.000.000 in one tax year period. If the total income of the Trader and Service Provider exceeded IDR 4.800.000.000 in one tax year period, then the VAT taxation regulations must be applied.

Furthermore, both Marketplace Platform Providers, traders and service Providers are required to carry out tax reporting in accordance with applicable provisions of tax laws and regulations. 

The writer would like to add, special obligations are also given to the Marketplace Platform Provider. Under this regulation, Marketplace Platform Providers must report recapitulation of trade transactions conducted by Traders and / or Service Providers to the Directorate General of Taxes every month in conjunction with the reporting of the VAT Monthly Income Tax Report.

In addition, this regulation also regulates tax treatment for online retail, classified ads, daily deals or social media. For the four platforms that are mentioned above, the tax regulations follow the generally applicable taxation regulations.

To carry out its supervisory function, the Government uses financial information obtained from Financial Services Institutions (LJK), Association Institutions and other Big Data to be used as a basis for testing tax compliance for e-Commerce transactions in accordance with generally accepted taxation regulations.

Furthermore, this regulation also regulates Import Duty and In The Course of Periodic Import (PDRI) for transactions conducted through Marketplace Platform Providers that have a Free On Board (FOB) customs value of up to USD 1.500. In terms of administration, Marketplace Platform Providers must first register their entities with the Head of Customs Office. Once approved, Marketplace Platform Providers are required to submit e-invoices for all import and e-catalog transactions to the Directorate General of Customs and Excise. If the Marketplace Platform Provider does not meet these obligations, the Head of the Customs Office may freeze import licenses held by the Marketplace Platform Provider.

The writer believes that the steps taken by the Government are a bit late, seeing the trend of e-Commerce transactions has been booming since before 2019, but the issuance of this regulation should be accompanied by socialization from the Directorate General of Taxes to e-commerce players including platform providers and traders / service providers that using that platform.


Upon writing and publishing this article, the Minister of Finance issued regulation number 31/PMK.010/2019 regarding the revocation of the Minister of Finance Regulation Number 210/PMK.010/2018.

Therefore, the Minister of Finance Regulation Number 210/PMK.0102018 regarding Taxation Treatment for E-Commerce Transactions shall be revoked and declared no longer valid starting 29 March 2019. (editor).


Source:

  1. https://bisnis.tempo.co/read/1150204/transaksi-e-commerce-indonesia-tertinggi-di-asia-tenggara/full&view=ok
  2. Peraturan Menteri Keuangan Republik Indonesia Nomor 210/PMK.010/2018 Tentang Perlakuan Perpajakan Atas Transaksi Perdagangan Melalui Sistem Elektronik (E-Commerce)
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Penulis : Andy Bagus Prakoso

Editor Materi : HU / WN
Alih Bahasa : RP / GP

 

 

The Ministry of Finance Regulation Number 87/PMK.05/2018
The Ministry of Finance Regulation Number 87/PMK.05/2018

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