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Discussion on E-commerce Tax Treatment

In connection with the government's plan to make taxation policies on e-commerce, idEA held an internal discussion of idEA members

  • On October 4, 2018, IDEA held an internal discussion at Artotel Hotel to discuss e-commerce taxation treatment, the results of which provided written input to the government.
  • In applying taxes on transactions of e-commerce users, the government needs to consider the potential and dynamics that result from e-commerce transactions.
  • At present, e-commerce is a place for the growth of a new economy or the potential of new business people such as housewives, students / students, employees etc. which will drive Indonesia's economic growth.
  • The sale of goods through informal media such as social media and chat applications is still more dominant than sales through formal e-commerce, while transactions and consumer protection on informal platforms are more difficult to monitor.
  • It is therefore a formal e-commerce task in moving markets from informal media to formal e-commerce to get safer transactions protected by consumers.
  • For this reason, the addition of provisions for tax treatment will certainly have an impact on the potential and dynamics of transactions in e-commerce going forward.
  • However, in this case e-commerce actors are willing to help the government to provide education and encourage merchants or users to educate and encourage merchants or users to fulfill tax obligations in accordance with applicable regulations in Indonesia.