Shopee subject to 10 percent tax, the price of finished goods is more expensive? All pages

KOMPAS.com – The Directorate General of Taxes (DGT) has again appointed a new company that meets the criteria as a value added tax (VAT) collector on digital goods and services sold to customers in Indonesia.

This time there are 12 new companies appointed, one of which is PT Shopee International Indonesia (Shopee).

With this appointment, starting October 1, 2020, 12 appointed companies will begin to collect VAT on digital products and services they sell to consumers in Indonesia.

“The amount of VAT that customers must pay is 10 percent of the pre-tax price, and must be included on the receipt or invoice issued by the seller as proof of VAT collection,” said the Director General of Taxes, Suryo Utomo, in his official statement.

So, with Shopee being appointed as a value added tax collector, will it make the price of goods sold at Shopee more expensive?

Also read: Apart from Netflix, this is another digital company that is subject to 10 percent taxpayers

Radityo Triatmojo, Head of Public Policy and Government Relations Shopee, said that until now, the tax reporting system implemented by Shopee is in accordance with the Minister of Finance Regulation (PMK) No.48 / PMK.03 / 2020.

This regulation is the basis for the collection rules digital tax in Indonesia.

Radityo explained that the 10 percent value added tax (VAT) which is charged to 12 foreign companies is not a tax e-commerce rather, taxes on intangible digital goods or digital services originating from abroad.

“So this additional tax will not affect the price of goods sold at Shopee,” he explained through the official statement received KompasTekno, Wednesday (9/9/2020).

He also added that Shopee will support the applicable regulations in Indonesia.

“Currently we are waiting for the official socialization from the Ministry of Finance / Director General of Taxes regarding the official ratification of this regulation,” concluded Radityo.

Meanwhile, DGT will continue to comb and establish communication with a number of other foreign companies that sell digital products or services to Indonesia.

Also read: You are required to pay taxes in Indonesia, this says Disney + Hotstar

Socialization was carried out to determine the readiness of the company, so that in the near future the number of companies appointed as VAT collectors will continue to grow.

“Specifically for marketplace who are domestic taxpayers who are appointed as collectors, the VAT collection is only done on the sale of digital goods and services by foreign sellers who sell through the marketplace, “said Suryo.

To date, a total of 28 foreign companies have been appointed as VAT collectors divided into three batches. Apart from Shopee, the companies appointed as VAT collectors in batch III are as follows: