The Directorate General of Taxes has successfully amassed revenue from the Value Added Tax (VAT) on Electronic Trading System (PMSE) totaling IDR 15.68 trillion until October 31, 2023.

In detail, this amount is derived from deposits in 2020 amounting to IDR 731.4 billion, deposits in 2021 amounting to IDR 3.9 trillion, deposits in 2022 amounting to IDR 5.51 trillion, and deposits in 2023 amounting to IDR 5.54 trillion.

Meanwhile, there are 161 PMSE business entities appointed as VAT collectors, the same as the previous month. META (parent company), and Instagram are among the PMSE entities that have made contributions to Indonesia.

In an official statement, the Director of Education, Services, and Public Relations of the Directorate General of Taxes, Dwi Astuti, explained, "The number of PMSE VAT collectors did not increase from the previous month because the government did not make appointments during October 2023."

During October 2023, the government only corrected data elements in the appointment decree from IBM Cloud International B.V. and Tencent Music Entertainment Hong Kong.

To enhance fairness and a level playing field between digital and conventional business entities, the government has regulated the appointment of PMSE business entities to collect VAT in accordance with the Minister of Finance Regulation Number 60/PMK.03/2022.

According to this regulation, appointed business entities are obligated to collect VAT at a rate of 11 percent on foreign digital products sold in Indonesia.

Furthermore, collectors are also required to provide evidence of VAT collection, which can be in the form of a commercial invoice, billing, order receipt, or similar documents stating the VAT collection and payment.

In the ongoing effort to create such fairness, the government will continue to appoint PMSE business entities that sell products or provide digital services from abroad to consumers in Indonesia.

The criteria for business entities that can be appointed as PMSE VAT collectors are transactions with Indonesian buyers exceeding IDR 600 million annually or IDR 50 million monthly, and/or the traffic volume in Indonesia exceeding 12,000 annually or 1,000 monthly.