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

Indonesia

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.

Indonesia Plans New E-Commerce Rules After Seller Complaints

UAE Introduces 4-Corner eInvoicing Model in Major Digital Tax Breakthrough

UAE Introduces 4-Corner eInvoicing Model in Major Digital Tax Breakthrough

The United Arab Emirates has introduced a 4-corner eInvoicing model, marking a significant milestone in the country’s transition toward a fully digital and automated financial ecosystem.

Announced by the Ministry of Finance on April 21, 2026, the new framework enables businesses to exchange electronic invoices through accredited service providers, improving efficiency, transparency, and compliance across the tax system.

A Structured and Secure Invoice Exchange System

Under the 4-corner model, invoices are no longer exchanged directly between supplier and buyer. Instead, both parties connect through approved service providers, creating a standardized and secure channel for invoice transmission.

This system ensures that invoice data is validated and reported automatically to the Federal Tax Authority via the EmaraTax platform. Businesses can select their preferred accredited service provider and begin onboarding into the system, allowing for seamless digital integration.

The model is designed to replace traditional invoice formats such as PDFs and emails with structured digital data, enabling real-time processing and reducing manual errors.

Boosting Compliance and Transparency

The introduction of the 4-corner model is part of the UAE’s broader strategy to modernize tax administration and align with global best practices.

Officials emphasize that the system will significantly enhance tax compliance by ensuring accurate and timely reporting of transactions. It also increases transparency across business operations, making it easier to monitor financial activities and reduce fraud risks.

In addition, the framework improves interoperability between businesses, service providers, and government systems, supporting a more connected and efficient financial environment.

Preparing for Mandatory Rollout

The launch of the 4-corner model comes ahead of the UAE’s planned phased rollout of mandatory eInvoicing between 2026 and 2027.

A pilot phase is expected to begin in July 2026, with businesses required to adopt structured electronic invoicing formats and integrate with accredited providers. Companies are encouraged to begin preparations early, including upgrading internal systems and selecting service providers.

Over time, the system is expected to evolve into a broader framework aligned with international standards, potentially expanding into more advanced models that include real-time tax reporting.

A Key Milestone in Digital Economy Strategy

The launch of the eInvoicing 4-corner model reflects the UAE’s ongoing commitment to digital transformation and economic modernization. By embedding compliance into transaction processes, the country aims to create a more efficient, transparent, and future-ready business environment.

As eInvoicing becomes a central component of financial operations, the initiative is expected to play a critical role in strengthening the UAE’s position as a global hub for digital commerce and innovation.

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