When you sell on eBay, sellers are responsible for complying with all applicable laws and selling regulations by the local government. If you are an Indonesia-based seller selling to buyers worldwide, starting from 1 February 2021 Indonesian value-added tax (VAT) will apply to your selling fees for the eBay Marketplace, including final value fees, subscription fees, insertion fees and feature fees.
Sellers are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay’s tax policy and your obligations, see our Tax policy and User Agreement.
Sellers’ tax responsibilities
Starting 1 February 2021, Indonesian VAT of 10% will apply to all fees paid by eBay sellers with a registered Indonesian address regardless of which eBay website you use for selling. The VAT will be included in your monthly invoice.
Your tax-related responsibilities may include:
- eBay will charge 10% VAT on sellers’ fees to eBay sellers based in Indonesia effective 1st February 2021.
- 10% VAT will apply to all eBay sellers, regardless of whether you are a B2B or B2C seller. There is currently no VAT exemption available for eBay B2B sellers.
- eBay B2B sellers based in Indonesia will not be required to reverse charge the VAT as eBay will collect VAT on digital services and remit to tax authorities.
- eBay sellers will see 10% VAT reflected on their monthly billing invoices.
Paying VAT on eBay sales
If you’re not sure whether this applies to your sales, contact your tax advisor or the Indonesian Tax Directorate General / Direktorat Jenderal Pajak Indonesia (https://www.pajak.go.id/en/digitaltax).
As always, thank you for selling on eBay.
eBay SEA
FAQ
Q: When will be the VAT be charged?
A: eBay will start to collect 10% VAT on seller fees effective February 1, 2021.
Q: How does Indonesian VAT apply to my seller account?
A: Suppose you are a seller with a registered Indonesian address (regardless of which eBay website you use for selling), 10% VAT will be applied to your monthly invoice that consists of eBay listing fees, final value fees, promoted listing fees, and monthly store subscription fees.
Q: I have updated my information to reflect my current address which is not located in Indonesia. Can eBay refund the Indonesian VAT previously charged on my seller account?
eBay is required to charge and remit Indonesian VAT based on the information in your seller account. When the VAT is calculated and collected, your account information has been associated with being registered in Indonesia and no refund will be issued for the charged Indonesian VAT.
Q: How do I obtain an Indonesian VAT registration number?
You may register for an Indonesian VAT registration number online by visiting the local tax office website Pajak.go.id/ or consult your tax and legal adviser.
Q: I don’t have a registered Indonesian address. Will my seller account be subjected to Indonesian VAT on fees?
If you don’t have a registered Indonesian address, your seller account will not be subject to Indonesian VAT collection. Consult your tax advisor to help you understand if you have any VAT obligations in Indonesia.
Q: How is Indonesian VAT charged?
eBay will charge all sellers with a registered Indonesian address a standard rate of 10% VAT for Selling on eBay listing fees, final value fees, promoted listing fees, and monthly store subscription fees.
Q: I updated my information to reflect my current address, which is outside of Indonesia. Why is eBay continuing to collect Indonesian VAT?
eBay calculates Indonesian VAT fees when a listing, promotion, and orders are placed and collected when the monthly invoice is released. This activity might have occurred if there were listing and selling activities before you have updated your current address and payment information.
Go to Seller Account Information and review each section to ensure that all your information is complete and accurate.
Q: For any rebate that sellers receive or cancellation of orders, will the tax be refunded?
A: eBay will provide a credit on the next month’s cycle period of invoice.
Q: Can I get confirmation from the Indonesian tax government regarding these VAT tax charges?
A: Yes, you may call the tax authority to verify this tax amount charged or refer to this link https://www.pajak.go.id/en/digitalta
Q: Can eBay help me with my tax return or deduction?
A: While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please visiting the local tax office website Pajak.go.id/ or consult your tax and legal adviser.