Indonesia: On 1 April 2020, the Indonesian tax authorities introduced VAT at 10% on all e-commerce goods and service transactions made by non-resident companies.
On 1 April 2020, the Indonesian tax authorities introduced VAT at 10% on all e-commerce goods and service transactions made by non-resident companies.
Prior to this, non-resident businesses providing e-commerce supplies to Indonesia did not have to charge VAT on their sales. However, to remove the unfair advantage that this gave to non-resident companies over Indonesian resident providers, the Indonesian government introduced VAT at 10% on these types of transactions.
The tax authorities also confirmed that the new tax must be charged and collected by the non-resident suppliers, who will have to register for VAT in the country.
The Russian government recently proposed that it will gradually reduce its Value Added Tax (VAT) rate from 20% to:
18% from 2021;
15% from 2023; and
12% from 2025.
Tunisia is proposing to introduce a new e-service tax at 3% on the sale of electronic services to consumers by non-resident businesses.
Due to controls in place by the Tunisian government, non-resident businesses cannot VAT register and apply VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Tunisian resident providers, the Tunisian government are planning to introduce the new e-service tax at 3% on these types of transactions.
If introduced this new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.