Overview

Amazon now collects an 11% Value Added Tax (VAT) on certain seller fees for accounts associated with Indonesian residents. This regulation stems from Indonesian government requirements for non-resident companies providing remote services to collect VAT from customers who are not VAT-registered within the country. Understanding how this tax applies to your account is essential for managing costs and ensuring compliance.

Key Points / What Sellers Need to Know

• 11% VAT rate applies — Indonesian resident sellers are charged an 11% VAT on listing fees, referral fees, fulfillment fees, and monthly subscription fees billed to their Amazon seller account.
• Only Indonesian residents are affected — If your seller account address is outside Indonesia, your fees will not be subject to this VAT collection.
• VAT is calculated at order placement — Amazon calculates the VAT when an order is placed and collects it when the order ships, based on the account information at the time of shipment.
• Monthly tax invoices are provided — Amazon sends a monthly tax invoice to the primary email on file for sellers who are charged Indonesian VAT, and invoices can also be accessed through Seller Central.
• VAT registration number can be added — Sellers with an Indonesian VAT registration number can add it to their account so it appears on tax invoices.

How It Works

The Indonesian government requires non-resident companies that provide remote services to collect VAT from Indonesian residents who are not registered for VAT. Amazon's marketplace fees — including referral fees, fulfillment fees, and monthly Professional selling plan subscriptions — qualify as remote services under this regulation. As a result, Amazon charges a flat 11% VAT on these fees for any seller account identified as belonging to an Indonesian resident. The tax is calculated when orders are placed and collected at the point of shipment, which means the account information on file at the time of shipping determines whether VAT applies.

Adding Your VAT Registration Number

Sellers who hold an Indonesian VAT registration number can add it to their Amazon account to have it displayed on tax invoices. To do this, navigate to your account settings in Seller Central, find the tax information section, and select Indonesia from the list of countries. Enter your 16-digit VAT registration number in the required format and accept the registration agreement. If you do not yet have an Indonesian VAT registration number, you may be eligible to register through your local tax office website, or you can consult a tax professional for guidance on the process.