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Indonesia VAT on non-resident e-services

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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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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