Indonesia lowers VAT exemption on low value imports
- Jan 5, 2020 | Richard Asquith
Indonesia is to lower the VAT exemption threshold on goods being imported from $75 to $3 per shipment. The measure will come into effect on 1 February 2020.
The measure reflects the growing e-commerce trade by consumers from foreign sellers, and is aimed at levelling the playing field for local online and shop retailers. Such trade has more than doubled to 50 million packages in 2019 compared to 2018. China is the primary source of sellers.
The withdrawal of the VAT and customs exemption reflects similar moves in Australia and New Zealand. The European Union plans to scrap its €22 threshold in 2021.