Retail in Asia

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Govt again hints at VAT for Indonesia’s e-commerce industry

The Finance Ministry has hinted that it plans to levy 10 percent value-added tax on all online purchases made in Indonesia, arguing that there should be no special dispensation for the country’s nascent e-commerce industry over traditional bricks and mortar retail.

"We have to be fair as this is just an ordinary shop that sells its products online," Wahju K. Tumakaka, a senior official at the ministry, told the state-run Antara news agency. "Online stores as well as those that do not operate online should pay the tax."

Wahju added that the tax should apply only to those e-commerce outlets whose sales surpassed IDR4.8 billion (USD410,000) a year.
 

(Source: Jakarta Globe )