Tax Authority Confirms E-Commerce Levy Is Not a New Tax, Effective July 2026

The Directorate General of Taxes (DJP) at the Ministry of Finance has emphasised that the planned tax collection on online stores (e-commerce) starting July 2026 will not result in double taxation. DJP Director of Extension, Services, and Public Relations, Inge Diana Rismawanti, stated that this is not a new tax for sellers. “The e-commerce tax is not a new tax. In fact, it has been in effect for a long time,” Inge said in Jakarta on Wednesday, 24 June 2026.

The policy, outlined in Minister of Finance Regulation No. 37 of 2025, mandates that e-commerce platforms act as collectors of Article 22 Income Tax at a rate of 0.5% on the gross turnover of sellers transacting on their platforms. Inge stressed that this mechanism is intended to assist sellers rather than impose a double burden. “There is no double deduction. In fact, the platform is helping sellers so they don’t have to bother paying taxes themselves. The tax is simply deducted, and the proof of deduction is provided,” she explained.

Each tax deduction made by the e-commerce platform will generate an official withholding slip, which will be automatically recorded in the seller’s Coretax account. This documentation can then be used as a tax credit during annual tax return filings. Inge noted that discussions have been held with associations and e-commerce stakeholders regarding the policy’s implementation, though the authority to appoint specific platforms as tax collectors rests with the Director General of Taxes. For sellers operating stores across multiple platforms, the DJP confirmed that all transaction data will be integrated into the central tax system as long as the seller’s name and National Identification Number (NIK) or ID are consistent.