E-Commerce or PMSE is a form of trade that uses digital technology, such as websites, applications, and other platforms, to carry out buying and selling transactions. Businesses using PMSE are required to pay attention to taxation aspects related to PMSE. The Ministry of Finance has issued Minister of Finance Regulation No. 60/PMK.03/2022 as a replacement for PMK Number 48/PMK.03/2020. In this regulation, it is explained that starting from April 1, 2022, the VAT rate is 11% of the Tax Base, and the VAT rate will be increased to 12% when the implementation of VAT tariffs is enforced as regulated in the VAT Law. The objects of VAT collection on PMSE transactions include Business to Business (B2B) and Business to Consumer (B2C) transactions. PMSE business players consist of foreign traders, foreign service providers, foreign PMSE organizers, and domestic PMSE organizers, who are appointed by the Minister of Finance as PMSE VAT collectors. There are certain criteria limitations for the appointment as PMSE VAT collectors, which are transaction values exceeding IDR 600 million per year or IDR 50 million per month, and the number of traffic or users exceeding 12,000 per year or 1,000 per month.
