PMSE (Trade Through Electronic Systems)
PMSE stands for Perdagangan Melalui Sistem Elektronik, or Trade Through Electronic Systems: trade in goods or services whose transactions run through a series of electronic devices and procedures. In a tax context, the term appears most often when discussing VAT collection on foreign digital products. Because sellers of digital products such as software, AI services, or streaming sit outside Indonesia, the government appoints those platforms as VAT PMSE collectors. An appointed platform must collect VAT from Indonesian consumers, remit it to the state treasury, and report it. The collection basis is governed by Minister of Finance Regulation Number 60/PMK.03/2022. The effective rate collected equals 11 percent of the digital product's selling price.
This article is for education, not tax advice.
Example
When you subscribe to an AI service or design app from a foreign provider, your bill increases by a VAT amount. That happens because the provider has been appointed as a VAT PMSE collector by the Directorate General of Taxes. For example, a Rp300,000 subscription is charged Rp33,000 in VAT, so the total you pay becomes Rp333,000.
Source: PMK Number 60/PMK.03/2022
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