Providers of Offshore E-Commerce Transactions Now Subject to 10% VAT

Providers of Offshore E-Commerce Transactions Now Subje


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Our May 2020 publication highlights the Regulation of the Ministry of Finance no. 48/PMK.03/2020 (“PMK-48”) regarding VAT on offshore e-Commerce transactions. PMK-48 stipulates that the utilization of offshore intangible taxable assets and/or services within Indonesia via e-Commerce is subject to 10% VAT. The publication lists the aforesaid intangible assets and services, and the mechanism for VAT collection, payment and reporting. 

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