EdukratifNews.com - The Indonesian government, through the Directorate General of Taxes (DGT) under the Ministry of Finance, has successfully collected value-added tax (VAT) revenues from digital commerce operators such as Google and Netflix.
As reported by CNBC Indonesia on Wednesday (9/8), the total collection amassed until July 31, 2023, reached Rp13.87 trillion. This VAT collection was made possible through 138 businesses out of a total of 158 digital enterprises that were designated as taxpayers.
"This amount comprises Rp731.4 billion collected in 2020, Rp3.90 trillion collected in 2021, Rp5.51 trillion collected in 2022, and Rp3.73 trillion collected in 2023," said Dwi Astuti, Director of Public Outreach, Services, and Public Relations at DGT.
Mandatory VAT Collection
In accordance with Ministry of Finance Regulation No. 60/PMK.03/2022, foreign business operators designated as withholding agents are required to collect VAT at a rate of 11 percent from foreign digital products sold in Indonesia.
These operators are also obligated to provide proof of VAT collection, which can take the form of a commercial invoice, billing, order receipt, or similar documents that indicate VAT and have been duly paid.
Newly Designated Foreign Digital Companies
In July 2023, the Directorate General of Taxes newly appointed foreign digital companies, including Salesforce.com Singapore Pte. Ltd and Grammarly, Inc. It is known that further appointments, such as Audible Ltd, are to be pursued this month.
Pursuit of Fairness and Equality in Business
The government intends to continue designating PMSE (Perdagangan Melalui Sistem Elektronik) businesses involved in the sale of foreign digital products or services to Indonesian consumers. This measure aims to create a sense of fairness and equality in both conventional and digital enterprises.
The selection of PMSE VAT withholding agents is based on certain criteria, including transaction value exceeding Rp600 million per year or Rp50 million per month with Indonesian buyers, as well as a yearly traffic count surpassing 12,000 or a monthly count of 1,000 within the country.
For your information, since 2020, the government, through the Directorate General of Taxes, has designated PMSE enterprises to collect VAT from foreign products and services. Prominent international companies like Spotify AB, Netflix International B.V, and TikTok Pte. Ltd. have long been among the entities appointed by the DGT.
Reference:
CNBC Indonesia. Google and Netflix Contribute Rp13.8 Trillion in Taxes to Indonesian Treasury. https://www.cnbcindonesia.com/tech/20230808155731-37-461190/google-sampai-netflix-setor-pajak-rp138-t-ke-kas-ri
Post a Comment