New tax rules for digital businesses, including Airbnb and Booking.com


The General Tax Directorate of the Ministry of Finance has again designated four companies that meet the criteria for collecting value added tax (VAT) for trade via the electronic system (PMSE).

Director of advice, services and public relations, Neilmaldrin Noor, said the appointment puts 94 digital companies subject to tax, including Airbnb.

The newly appointed PMSEs are Booking.com BV, EA Swiss Sarl, Elsevier BV, Native Instruments GMBH, Upcloud Limited, Mega Limited and Company Airbnb Ireland Unlimited,“Noor said in a press release on Friday January 7th.

Noor said the 94 PMSEs were the result of appointments, corrections and dismissals. Since the entry into force of the VAT regulation on trade via the electronic system in July 2020, the General Directorate of Taxation has repealed it only once, namely for PT Fashion Eservice Indonesia (Zalora), in December 2020 .

Leftovers are appointments and corrections. Most recently, he corrected one PMSE in November 2021 and corrected four in December 2021.

The new fixes are Linkedin Singapore Pte. Ltd, Expedia Lodging Partner Services Sarl, Hotels.com, LP, BEX Travel Asia Pte. Ltd., and Travelscape, LLC.

“These companies are active in cloud computing, travel reservation services, social networks, game services and others that sell their products and services to consumers in Indonesia,” Noor explained.

Consumer prices could rise

With the appointment of PMSE companies, the price of goods and services offered will be more expensive. Indeed, they are obliged to collect and deposit value added tax (PPN) on intangible taxable goods (BKP) and / or taxable services (JKP) from abroad that they sell to domestic consumers. .

Like other designated PMSE businesses, these newly designated businesses are required to collect VAT of 10% of the value of money paid by the buyer, exclusive of VAT.

The collection of value added tax is carried out at the time of payment by the purchaser of goods and / or recipients of services to the company,” he said.

These businesses are also required to provide proof of VAT collection, which may take the form of a commercial invoice, invoice, order receipt or similar document confirming that the collection and payment have been done.

As of December 31, 2021, 74 PMSEs have collected and filed a value added tax with a value of 4,634.7 billion rupees.

“The General Directorate of Taxation continues to identify foreign PMSE companies in Indonesia so that the number of value added tax collectors will increase in the near future,” noted Noor.


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