As an implementing regulation to Ministry of Finance Regulation no. 48/PMK.03/2020 dated 5 May 2020 (“PMK-48/2020”), the Director General of Tax (DGT) has issued regulation No. PER-12/PJ/2020 Concerning Criteria of Collectors, collection, payment, and reporting of VAT on utilization of intangible goods and/or taxable services from outside the Customs Territory within Indonesia through electronic systems (“PMSE” or “E-Commerce” VAT Collector).

As stipulated in PMK-48/2020, VAT is imposed on utilization of “digital products” from outside the Customs Territory within Indonesia through electronic systems. Utilization of intangible goods/ taxable services in this context includes utilization of digital goods (e.g. movie, music, computer software, mobile app, games, electronic book, magazine, comic, etc.) and digital services (e.g. web hosting, video conferencing services, etc.) (“digital intangible goods / services”).

Criteria of PMSE VAT Collector

The PMSE VAT Collector is appointed by the Minister of Finance and delegated to the Director General of Tax (“DGT”). To be appointed as a PMSE VAT Collector, the individual or entity should meet the following criteria:

1. The value of transactions with the Indonesian buyers / service users exceeds IDR600 million per year or IDR50 million per month; and/or
2. The traffic or accessors total more than 12,000 per year or 1,000 per month.