Decoding the E-commerce Transactions Tax Landscape in Indonesia: Regulations, Implications, and Future Outlook

The Indonesian Tax Authority has regulated the tax treatment of trade transactions through an electronic system (e-commerce). The regulation is stipulated in PMK No.210/PMK.010/2018 and is effective on April 1, 2019.

In the regulation, the law of tax treatment on e-commerce includes Value Added Tax, Sales Tax on Luxury Goods, Income Tax on transactions within the Customs Area, and Import Duty on imported goods. E-commerce can be done through marketplace and other platforms, such as online retails, classified ads, daily deals, or social medias.

E-commerce Transactions Tax

Along with the technology advancement, buying and selling transactions are not limited by space and time. Almost all products and services can be marketed through e-commerce scheme; in simple terms, e-commerce is the distributions, sales, purchases, and marketing of goods or services that rely on electronic systems, and the Marketplace Platform as a place for buying and selling transactions to be carried out.

E-commerce Transactions Tax Implications on Marketplace Platforms

Trading through an electronic system (e-commerce) of goods and/or services within the Customs Area through the Marketplace Platform is carried out in the following ways:

  • Marketplace Platform Providers provide trading services through electronic systems (e-commerce) for goods and/or services;
  • Merchants or Service Providers use the Platform facilities provided by the Marketplace Platform Providers to trade through electronic systems (e-commerce);
  • Buyers of goods or service recipients make transactions to purchase goods and/or services through the Marketplace Platform Provider; and
  • Payments for trade in goods and services through an electronic system (e-commerce) by buyers to Merchants or Service Providers are made through the Marketplace Platform Provider.

Requirements for Marketplace Platform Providers

The following are the tax implications that occur on the marketplace platform:
– The Marketplace Platform Provider must have an NPWP and be confirmed as a Taxable Entrepreneur (PKP).

– PKP Merchants or PKP Service Providers who deliver Taxable Goods (BKP) and/or Taxable Services (JKP) electronically (e-commerce) through Marketplace Platform Providers are required to collect, deposit, and report:

a.Value Added Tax payable; or
b.Value Added Tax and Sales Tax on Luxury Goods. Value Added Tax payable is 11% (eleven percent) of the Transaction Value of BKP and/or JKP submission. Rates are effective April 1, 2022.

– Merchants or Service Providers who deliver goods and/or services electronically (e-commerce) through Marketplace Platform Providers must carry out Income Tax obligations by the legislation’s provisions in the Income Tax Law.

– The Marketplace Platform Provider must report the recapitulation of trade transactions carried out by Merchants and/or Service Providers through the Marketplace Platform Provider to the Directorate General of Taxes. The recapitulation of trade transactions, as referred to, is a document that must be attached to the Periodic VAT Return. The Marketplace Platform Provider is also required to make a Tax Invoice.

Customs Regulations for Marketplace Platform Providers

Customs regulations for marketplace platform providers who import:
The Directorate General of Customs and Excise applies rules on imports on the marketplace platform in the form of:

– Import Goods that:

  • the transaction is carried out through a Marketplace Platform provider registered with the Directorate General of Customs and Excise;
  • the delivery is made through the Postal Operator;and
  • has a customs value of up to Free On Board (FOB) USD 1,500 (one thousand five hundred United States Dollars), the tax treatment is carried out based on a Ministerial Regulation.

– Import of goods whose transactions are carried out through the Marketplace Platform Provider:

  • has a customs value of more than Free On Board (FOB) USD 1,500 (one thousand five hundred United States Dollars); or
  • not using the Delivery Duty Paid (DDP) scheme, carried out by the laws and regulations governing the import of consigned goods.

Marketplace Platform Providers with a high frequency of imports of goods can apply for registration to the Head of the Customs Office.

After obtaining approval, the Marketplace Platform Provider must submit an e-invoice for every shipment of goods and e-catalog transactions and must, calculate import duties and/or PDRI, and be responsible for the obligation to deposit import duties and/or Taxes in the Context of Imports (PDRI) on goods.

Stamp Duty on Digital Platforms

Indonesia Tax Authority (ITA) plans to impose a stamp duty for the terms and conditions (t&c) on digital platforms such as e-commerce of IDR 10,000. This is by Article 3 paragraph (2) of Law Number 10 of 2020 concerning Stamp Duty.

Looking for expert assistance and guidance regarding the E-commerce Transactions Tax in Indonesia? Look no further than SW Indonesia, your trusted partner in navigating the complex world of taxation. Our team of experienced professionals is well-versed in Indonesian tax regulations and can provide valuable insights tailored to your specific needs. Whether you’re a marketplace platform provider, a merchant, or a service provider, we can help you understand and comply with the E-commerce Transactions Tax requirements effectively. Contact us today at +62 2993 2132 or email us at [email protected] to ensure your business stays compliant and thrives in the dynamic landscape of e-commerce taxation.


  • SW Indonesia

    As the webmaster and author for SW Indonesia, I am dedicated to providing informative and insightful content related to accounting, taxation, and business practices in Indonesia. With a strong background in web management and a deep understanding of the accounting industry, my aim is to deliver valuable knowledge and resources to our audience. From articles on VAT regulations to tips for e-commerce taxation, I strive to help businesses navigate the complexities of the Indonesian tax system. Trust SW Indonesia as your go-to source for reliable and up-to-date information, empowering you to make informed decisions and drive success in your business ventures.

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