Indonesian online retailers to be taxed

Indonesian online retailers to be taxed

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In recent times, online shopping has become a huge trend among buyers, as it allows them to avoid long queues and sales tax. However, the current situation is most likely going to change soon, as the government of Indonesia is set to introduce a plan which was formulated in July 2013, under which the government will start collecting tax on sales conducted online.

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The Trade Ministry Secretary General Gunaryo said, “With the new Trade Law, we have a strong base to oblige all online sellers to pay tax on each transaction they make”. The minister went on to say that the government will soon instruct online retailers to provide personal and business details for tax, as well as dispute settlement purposes.

Gunaryo added that so far, a number of online retailers were enjoying the benefits of the flourishing Indonesian online market without having to pay sales or income tax. The Deputy Secretary General of Indonesian Employers Association Franky Sibarani said that about 60 percent of all online retailers in the country did not pay sales tax, which means that about trillions of rupiah worth of online transactions went untaxed each year.

The e-commerce market transactions are expected to see an annual growth of 40.2 percent to 650 million dollars from 2010 to 2015.

Photo Credits: IB Times