Indonesia's Directorate General of Taxes (DGT) has again expanded its roster of collectors for Value Added Tax on Trade Through Electronic Systems (PMSE). During the April 2026 period, the DGT appointed two new entities: HashiCorp, Inc. and Perplexity AI, Inc. With these additions, the number of businesses designated as VAT PMSE collectors reached 264 entities by the end of April 2026.
The appointment of Perplexity AI signals that subscription-based artificial intelligence services from abroad now fall within the scope of digital-product VAT collection. Indonesian consumers who subscribe to these services will be charged VAT directly at the point of transaction.
Legal Basis for the Appointment
The VAT PMSE collection mechanism is governed by Minister of Finance Regulation Number 60/PMK.03/2022 on Procedures for Appointing Collectors, and for Collecting, Remitting, and Reporting VAT on the use of intangible Taxable Goods and/or Taxable Services from outside the customs area within the customs area through PMSE.
This regulation derives from Article 6 paragraph (13a) of Government Regulation in Lieu of Law Number 1 of 2020, which was enacted into Law Number 2 of 2020. Under PMK 60/PMK.03/2022, businesses that meet a defined transaction-value or traffic threshold must be appointed as collectors, then collect, remit, and report the VAT due.
How Much VAT Is Collected
Since the general VAT rate rose to 12 percent, VAT PMSE is computed using the formula of 12 percent multiplied by a Tax Base set at an "other value" of 11/12 of the selling price of the digital product. This calculation keeps the effective VAT burden equal to 11 percent of the selling price, so digital-service prices do not spike because of the rate increase.
For example, on an AI subscription worth Rp300,000, the VAT collected is 12 percent x (11/12 x Rp300,000) = Rp33,000, equal to 11 percent of the selling price.
Collection Evidence Is Creditable
Proof of VAT PMSE collection may take the form of a commercial invoice, billing statement, order receipt, or other document that states the VAT collected and the collector's identification number. For VAT-registered entrepreneurs (PKP) who use such digital services for business activities, this document may be treated as creditable Input Tax provided it meets the crediting requirements in the VAT Law.
Digital Economy Tax Revenue
The DGT recorded tax revenue from the digital economy sector reaching Rp52.04 trillion through April 2026. This figure spans VAT PMSE, tax on crypto-asset transactions, tax on financial technology services, and tax on government procurement transactions through electronic systems. VAT PMSE alone contributed Rp4.27 trillion during the period.
What Consumers and Businesses Should Note
Consumers subscribing to foreign digital services should be aware that VAT is automatically added to the bill. For businesses, it is important to retain collection evidence for every software or AI subscription used for operations, since the document forms the basis for crediting Input Tax if the company holds PKP status.