Indonesia VAT on non-resident e-services
- Sep 9, 2019 | Richard Asquith
The Indonesian government is preparing a bill to extend VAT collections on e-commerce sales by foreign providers of e-services. Indonesian VAT is currently 10%. The bill could be enacted in time for 2020.
E-services includes income from: streaming and download media; gaming; app’s; e-books; online publications; SaaS services; online gambling; and e-learning.
Many countries around the world have been extend indirect taxes to offshore providers. The EU imposed a single VAT return for providers, the Mini One-Stop-Shop, in 2015. New Zealand and Australia have since imposed their Goods and Services Taxes on non-resident digital services. Mexico is also considering a foreign e-services VAT bill for early 2020.
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