Marketplaces in Indonesia to Collect Taxes on Behalf of E-Commerce Sellers

Indonesia will put a new practice aimed at increasing tax compliance in the digital commerce ecosystem into effect as of November 1, 2026. Under the new regulation, designated e-commerce marketplaces will collect income tax on behalf of businesses making sales and transfer it to the tax authority. The government announced that the implementation had previously been postponed twice and that the final date was determined following economic conditions and the completion of the preparation process.

E-Commerce Platforms in Indonesia Assigned Tax Collection Responsibility

Under the new system, major marketplaces such as Tokopedia, Shopee, Lazada, and Blibli will deduct income tax from the sales of sellers who meet the criteria and transfer it to the government. While the regulation particularly covers small and medium-sized enterprises, sellers with annual turnover below 500 million rupiah may be exempt from the practice if they submit the required declaration. The platforms will also share sales data with tax authorities.

Tax Compliance and the Digital Economy Are Being Targeted

According to Indonesian officials, the regulation does not introduce a new tax; it only changes the method of collecting the existing income tax. The aim is to increase tax compliance in online commerce, reduce unregistered economic activities, and bring the digital economy under more effective oversight. In this context, shifting the responsibility for tax collection from individual sellers to platforms is also intended to facilitate administrative processes. Indonesia therefore plans to establish more effective tax management within its rapidly growing digital commerce ecosystem.

Implementation Postponed Due to the Preparation Process

The government previously decided to postpone the implementation twice. During the postponement period, the aim was both to support consumer spending and to allow e-commerce platforms to complete their technical preparations. According to the latest announcement, the new system will enter into force on November 1, 2026, and platforms will assume responsibility for tax collection from that date onward. The Indonesian government states that the practice will strengthen tax compliance in the digital commerce sector.

E-Commerce Market Continues to Grow

According to data from Google, Temasek, and Bain & Company, Indonesia’s e-commerce market reached approximately $71 billion in gross merchandise value in 2025. While the market is expected to rise to approximately $140 billion by 2030, the new tax system aims to transform the growing digital economy into a more sustainable and formally registered structure.