Indonesia's Digital Tax Revenue Reaches Rp9.17 Trillion by October 2022

The Ministry of Finance reported that value-added tax (VAT) revenue from electronic system trading (PPN PMSE), or digital tax revenue, reached Rp 9.17 trillion until October 2022. The number of digital tax collectors continues to increase.

As of October 31, 2022, the Government had appointed 131 Electronic System Trading (PMSE) businesses as Value Added Tax (VAT) collectors. This number increased by one business compared to the previous month; Adobe Systems Software Ireland Limited.

Of the total number of appointed businesses, 111 have collected and paid Rp 9.17 trillion. This amount comprises Rp 731.4 billion in payments from 2020, Rp 3.90 trillion from 2021, and Rp 4.53 trillion from 2022.

Furthermore, in accordance with PMK-60/PMK.03/2022, appointed PMSE businesses are obligated to collect VAT at an 11% rate on foreign products sold in Indonesia.

“Not only that, businesses appointed as PPN PMSE collectors must issue VAT collection evidence for the tax collected. This evidence can be in the form of a commercial invoice, billing, order receipt, or similar documents stating the VAT collection and payment,” said Neilmadrin Noor, Director of Dissemination, Services, and Public Relations of the Directorate General of Taxes, Ministry of Finance, in his official statement on Tuesday (November 8).

The government will continue to provide equal opportunities between conventional and digital businesses (level playing field). The Directorate General of Taxes (DJP) will continue to appoint PMSE businesses that sell digital products or services from abroad to consumers in Indonesia and meet the criteria: transaction value with Indonesian buyers exceeding Rp 600 million per year or Rp 50 million per month; and/or the number of traffic in Indonesia exceeding 12,000 per year or 1,000 per month, to collect PPN PMSE on their activities.