The government's endeavors to implement value-added tax (VAT) on digital trade through the Digital Trade System (PMSE) have proven fruitful, with VAT collections totaling IDR 17.46 trillion by January 2024. This cumulative amount reflects contributions from various years, demonstrating the increasing compliance of 153 designated PMSE entities out of the authorized 163 in collecting and remitting VAT on foreign digital products sold domestically. Dwi Astuti, Director of Information, Services, and Public Relations at the Ministry of Finance's Directorate General of Taxes, highlights the successful implementation of VAT collection, showcasing the effectiveness of the initiative.
In January 2024, two businesses, Sandbox Interactive GmbH and Zwift, Inc., were appointed to collect VAT at an 11% rate on foreign digital products sold in Indonesia. These businesses are mandated to furnish evidence of VAT collection, adhering to the guidelines set in Finance Minister Regulation (PMK) No. 60/PMK.03/2022. The government's commitment to refining data elements and adjusting VAT designations for specific entities demonstrates a strategic approach to ensuring accurate and transparent tax collection in the digital trade sector. Moving forward, the Directorate General of Taxes plans to continue designating PMSE businesses that meet specific criteria, reinforcing the government's commitment to robust tax enforcement in the digital realm.
