In the current bill, which is being discussed by the government, e-commerce transactions must be reported so that the government can calculate the amount of tax that should be paid from the transactions. "We should apply the Korean system, where the authority collects the taxes in the payment gateway because e-commerce transactions are paid through online systems," Yustinus said at a seminar on taxation in Jakarta on Thursday. Under Director General of Taxation Regulation No. SE-62/PJ/2013, the government collects income tax and value added tax (VAT) from four kinds of e-commerce: online marketplace, classified ads, daily deals and online retail. Meanwhile, for classified ads, the taxes are collected from the places producers promote their products and for online retail the taxes are collected per the transaction between buyer and seller.

Source: The Nation Bangkok August 04, 2017 01:52 UTC