Friday, August 31, 2012

VAT on cross border transaction

written by Gerry octaviano

Indonesia adopted both origin and destination principle, it can be seen from the SE-145 which revoked SE-08 concerning VAT on trading services. This regulation explains clearly vat imposed where the service is performed (origin principles) and where the service is received.

The question is if the customer from Indonesia (Mr.A) and service provider from US (mr.b).

Mr.A goes to US to consult regarding his financial corporation.

1. Should  Indonesia has the right to impose the VAT?
...............


How about e-commerce transaction i.e agoda, etc...?????.....


Allah Wa'Allam



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