SAP Knowledge Base Article - Preview

2942559 - Indonesia: VAT on Digital Goods and Services 2020 General Guidance

Symptom

From July 1, 2020, VAT will apply to sales of digital goods and services by overseas sellers to Indonesian customers.

Overseas businesses selling digital goods and services to Indonesian customers will be responsible for:

• charging and collecting VAT, and

• meeting the reporting, payment, and record-keeping requirements

Oversees businesses must be registered when the total value of digital services provided to a consumer in Indonesia during 12 months exceeds a certain volume (traffics) and amount.

A consumer in Indonesia means any person who meets any of the following conditions:

(i) Makes payment for digital goods and services using credit or debit facility provided by any financial institution or company in Indonesia;

(ii) Acquires digital goods and services using an Internet protocol address registered in Indonesia or an international mobile phone country code assigned to Indonesia;

(iii) Resides in Indonesia

In determining whether consumer resides in Indonesia, FRP may consider information or declaration from the consumer as below:

(i) The billing address of the consumer is in Indonesia

(ii) The home address of the consumer is in Indonesia

(iii) Recipient's country selection

Overseas businesses are required to report the VAT collection for Digital Goods and Services electronically using applications or system by DJP every three (3) months.

This announcement contains information about the new legal change for VAT on Digital Goods and Services, published by Direktorat Jendral Pajak (DJP): PMK-48 2020.

This information is based on legislation and regulations which are subject to change at any time by the respective authorities and are therefore not binding. The information will be updated if required.


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Environment

  • Financial Accounting (FI)
  • SAP R/3
  • SAP R/3 Enterprise 6.0
  • SAP ERP Central Component
  • SAP ERP
  • SAP enhancement package for SAP ERP
  • SAP enhancement package for SAP ERP, version for SAP HANA

Product

SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions

Keywords

Indonesia VAT on Digital Goods and Services 2020 , KBA , XX-CSC-ID-FI , Financial Accounting , XX-CSC-ID-LRQ , Legal Requirement Clarification , How To

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