Indonesia says online VAT collection aims to ensure fair competition
Tax officials also named four marketplaces to collect Article 22 income tax under a regulation effective from 1 October 2026.
Indonesia’s collection of value-added tax (VAT) on online transactions is intended to give digital and conventional retailers equal treatment, Finance Minister Suahasil Nazara said at the APBN Kita press conference on 13 November 2026.
To illustrate the difference, Suahasil said a customer buying tissues from a physical shop paid 11 per cent VAT, while an online purchase did not attract the tax. He said that disparity left retailers competing on unequal terms, and described tax parity as the central purpose of the electronic commerce tax policy being introduced.
Separately, Director-General of Taxes Bimo Wijayanti discussed Article 22 income tax collection for electronic commerce. He said its legal basis, Finance Minister Regulation PMK 37 of 2026, took effect on 1 October 2026. The tax directorate has appointed Tokopedia, Shopee, Blibli and Lazada to collect that tax.
Bimo said the first figures from implementation would be reported in November, with payment scheduled for 15 November and reporting for 20 November. He said more precise figures would be provided later.
