Indonesia Revokes Amazon Services' Digital Tax Collection Status

Background and Criteria for Digital Tax Collection

The Directorate General of Taxes (DJP) under the Ministry of Finance has revoked the status of Amazon Services Europe S.a.r.l as a collector of Value-Added Tax (VAT) for e-commerce transactions, known in Indonesia as Pajak Pertambahan Nilai (PPN) Perdagangan Melalui Sistem Elektronik (PMSE). This decision, effective since November 3, 2025, was made because Amazon Services no longer meets the criteria set by the Indonesian tax authority.

Criteria for VAT Collection on E-commerce

To be designated as a VAT collector for e-commerce transactions in Indonesia, companies must meet specific thresholds. These include having transactions with Indonesian entities exceeding Rp600 million in a year or Rp50 million in a month. Additionally, companies must have more than 12,000 visitors from Indonesia annually or over 1,000 visitors monthly.

Current Status of Digital Tax Collection in Indonesia

As of November 2025, the DJP has designated a total of 254 companies as VAT collectors for e-commerce transactions. Recently, three new companies were added to this list: International Bureau of Fiscal Documentation, Bespin Global, and OpenAI OpCo LLC. Out of these 254 companies, 215 have actively collected and remitted VAT, generating a total of Rp34.54 trillion. The breakdown includes Rp731.4 billion in 2020, Rp3.9 trillion in 2021, Rp5.51 trillion in 2022, Rp6.76 trillion in 2023, Rp8.44 trillion in 2024, and Rp9.19 trillion as of 2025.

Impact and Future Outlook

The inclusion of companies operating in the artificial intelligence (AI) sector, such as OpenAI, among the VAT collectors highlights the growing significance of the digital economy in Indonesia's tax revenue. The DJP views this development positively, as it indicates the digital economy's increasing contribution to state revenue. The revocation of Amazon Services' status, however, signals a stricter enforcement of the criteria for digital tax collection, potentially affecting other companies operating in the Indonesian digital market.