In Indonesia, there are many e-commerce applications such as Shopee, Lazada, Tokopedia, TIKTOK, Blibli and many more. These applications have become indispensable tools in daily life and are widely used in the digital age. So, let’s learn about the Indonesian e-commerce tax rate.
In order to regulate the tax issues of e-commerce, the General Administration of Taxation of the Ministry of Finance of the Republic of Indonesia issued Regulation No. 210/PMK.210/PMK.010/2018. In this regulation, e-commerce platform providers must have a taxpayer identification number and register as a VAT subject. At the same time, store merchants or service providers must also register NPWP with the e-commerce platform.
For merchants and service providers who use e-commerce platforms, they need to register NPWP with the platform. When the annual turnover does not exceed 4.8 billion Indonesian rupiah, the final income tax is paid at 0.5% of the turnover. When the annual turnover exceeds IDR 4.8 billion, you need to register as a value-added tax entity (PKP).
E-commerce platforms must hold NPWP and register as a value-added tax entity (PKP). The platform party needs to collect, store and report the specific content of value-added tax (PPN) and income tax (PPh) for the services provided by the platform party to merchants and service providers. In addition, the e-commerce platform party also needs to report the transactions conducted by each merchant using the platform. Data overview.
Merchants and service providers that provide taxable goods or taxable services through e-commerce platforms must collect. This tax is 10% of the transaction value of the taxable goods or taxable services delivered. At the same time, for Value-added tax and sales tax on luxury goods also need to be implemented in accordance with the tax rate procedures for deposit and declaration stipulated in laws and regulations.
The above introduces the relevant knowledge about e-commerce tax rates in Indonesia. Merchants and service providers doing e-commerce in Indonesia must operate in accordance with Indonesian laws and regulations. These companies need to declare various taxes and monthly and annual reports in a timely manner. The Indonesian Taxation Bureau has established a network with many business systems. If taxes are not processed in a timely manner, not only will there be relevant fines, but it will also affect the extension or change of company licenses and other issues.