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Traders required to pay taxes, although e-commerce rule canceled

Jakarta Post - April 4, 2019

Jakarta – Finance Minister Sri Mulyani has stressed that the cancellation of the e-commerce tax regulation would not apply to those sold products through online marketplaces and social media platforms.

"We're giving the same treatment to businesses offering products through online marketplaces and social media platforms," Sri Mulyani said recently as quoted by kontan.co.id, after the revocation of Finance Ministerial Regulation No. 210/2018 on taxes for e-commerce transactions.

The regulation, which was originally meant to be enforced on April 1, required online marketplaces to collect several pieces of information, such as tax numbers (NPWP) and personal identity numbers (NIK).

The regulation also stated that online transactions were subject to taxes that also applied to offline transactions, such as value-added tax (PPN) and luxury goods tax (PPnBM).

The minister said those with revenues lower than Rp 4.8 billion annually were only required to pay 0.5 percent final income tax, adding that the government would collect information from e-commerce players about the online businesses and disseminate information on taxation obligations to all stakeholders.

"We will carry out ecosystem analysis. We will cooperate with [e-commerce] players to ensure taxation understanding," Sri Mulyani added. (bbn)

Source: https://www.thejakartapost.com/news/2019/04/04/traders-required-to-pay-taxes-although-e-commerce-rule-canceled.html