Indonesia: Implemented Regulation Including VAT on Digital Services and Goods (No. 60/PMK.03/2022)

On 1 April 2022, Regulation No. 48/PMK.03/2020 was replaced by Regulation No. 60/PMK.03/2022, which updates the rules concerning the imposition of Value-Added Tax (VAT) on goods and services provided to Indonesian consumers from international sellers and service providers by bringing the VAT rate in line with the newest tax rates (11%) and imposing additional reporting obligations. Regulation 60/PMK.03/2022 was adopted and implemented the same day. Many of the existing requirements remain the same, meaning that the VAT duty applies to international sellers and service providers if they have more than 600 million IDR revenue annually or at least 12’000 Indonesian consumers annually.