PMSE VAT in Indonesia: When Foreign Digital Sellers Must Collect
PMSE VAT in Indonesia: when a foreign digital seller is appointed to collect, who counts as an Indonesian customer, and how to pay and file each month.
References (4)
- PMK No. 81 Tahun 2024, in force 1 January 2025, Articles 332 to 339, replacing PMK No. 60/PMK.03/2022. They charge VAT on intangible goods and services, digital ones included, bought from abroad through e-commerce. They also set who collects it, who counts as an Indonesian customer, the rate, the receipt, and monthly payment and filing.
- PER-12/PJ/2025, in force 22 May 2025, replacing PER-12/PJ/2020. It sets the appointment thresholds (Article 4), choosing to be appointed (Article 5), revocation (Article 6) and the tax number (Article 7). It also sets the 11/12 base (Article 9), the receipt (Article 11), payment (Article 12) and the monthly return (Articles 13 and 14).
- PMK No. 131 Tahun 2024, in force 1 January 2025, Article 3: the 12% rate on an 11/12 base also applies to intangibles and services used in Indonesia from abroad.
- PMK No. 49 Tahun 2026, in force 20 July 2026, Articles 3 and 5(1): collection by appointed payment providers on foreign digital purchases that no appointed collector charged.
PMSE VAT in Indonesia (PPN PMSE, PPN being Indonesian for VAT) is the VAT charged on intangible goods and services that people in Indonesia buy from abroad online. PMSE stands for Perdagangan Melalui Sistem Elektronik, trade through electronic systems. The tax office (DGT, Direktorat Jenderal Pajak) appoints sellers and platforms, foreign ones included, to collect it themselves, as a VAT collector, the pemungut PPN PMSE (Finance Minister Regulation PMK 81/2024, Articles 332(1)–(2) and 334(4)).
The duty to collect starts with that appointment, which the DGT makes for sellers whose Indonesian sales or traffic have passed set thresholds, shown below. The same rules cover VAT on digital goods and VAT on digital services (Article 333(2)–(3)).
Who counts as an Indonesian customer
A buyer is treated as Indonesian when any one of these points to Indonesia (Article 335):
Where they are
A billing or correspondence address in Indonesia, or Indonesia chosen as the country when the account was opened.
How they pay
A debit card, credit card or other payment method provided by an institution in Indonesia.
Where they connect from
An Indonesian IP address, or a phone number with the Indonesian country code.
Individuals and companies both count (Article 335(1)).
The two tests for appointment
The DGT appoints a seller that passes either of two tests for its Indonesian business (Director General of Taxes Regulation PER-12/PJ/2025, Article 4):
Either test is enough to meet the criteria.
How appointment works
The DGT appoints a seller by decree, and the appointment starts at the beginning of the month after the decree’s date (PER-12/PJ/2025, Article 3). The DGT gives a foreign collector an Indonesian tax number (NPWP) (Article 7(1) and (3)).
A seller not yet appointed can tell the DGT that it would like to be, through the tax office’s online portal or at a tax office. The DGT then decides (Article 5). If the business later falls below the thresholds, the collector can tell the DGT, which may then revoke the appointment (Article 6).
When you sell through a marketplace, whichever of you is appointed and issues the invoice or receipt collects the VAT (PMK 81/2024, Article 332(4)).
What a collector does each month
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Charge
Add VAT at 12% on 11⁄12 of the price before VAT.
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Record
An invoice or receipt shows the VAT and the payment.
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Pay
A foreign collector pays in rupiah or US dollars.
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File
A foreign collector may file in English.
The VAT is 12% on 11⁄12 of the price before VAT, which comes to 11% of the price (PER-12/PJ/2025, Article 9; PMK 131/2024, Article 3). Your invoice, billing or order receipt is the collection receipt, as long as it states the VAT collected and that payment was made (PER-12/PJ/2025, Article 11(1)–(2)). A VAT-registered Indonesian customer may give you its name and tax number, or its tax-registered email, to put on it, so that it can credit the VAT (Article 11(5)–(8)).
You pay by the end of the following month, before filing the return, which is due the same day and lists the sales behind it (PER-12/PJ/2025, Articles 12 to 14). Missing either deadline brings the penalties of the general tax procedures law (PMK 81/2024, Articles 338(5) and 339(2)).
A month with nothing to pay still needs a return
Once appointed, a collector files every month, including a month in which nothing was collected or paid (PER-12/PJ/2025, Article 13(3)).
If you would rather not run this each month, we can handle the monthly payment and return for you.
When no collector charged VAT
Where the seller is not appointed, the VAT is still due, and the Indonesian buyer pays it itself (PMK 81/2024, Article 332(5)). Under PMK 49/2026, in force 20 July 2026, banks and payment providers appointed by the DGT may also collect it on some of those purchases (Articles 3 and 5(1)). The buyer’s side is covered in our guide to VAT compliance in Indonesia.
Registering a platform as an electronic system operator (PSE) with Komdigi, the communications and digital ministry, is a separate question, covered in our guide to PSE registration.
What PMSE VAT in Indonesia means for you
If your Indonesian sales or traffic pass either test, the DGT can appoint you. Our corporate tax team registers foreign digital companies as VAT collectors, and can handle the monthly payment and return for you if you want.