Matt Harris

Key Takeaways

  • WP Engine is collecting Indonesian VAT on digital services for Indonesian residents. The VAT rate is 11% and applies to all customers with an Indonesian address.

  • If VAT registered in Indonesia, provide your Tax Registration Number to recover VAT paid on services from WP Engine. This number should be entered in the User Portal under ‘VAT/GST ID’.

  • WP Engine will not retroactively charge customers for Indonesian VAT; VAT will be charged beginning November 1, 2023, based on the invoice date.

  • Contact support for further assistance with Indonesian VAT inquiries. WP Engine offers 24/7 support for any questions or concerns.

Find answers to common questions about what VAT in Indonesia means for your relationship with WP Engine.

Important

The Information in this communication does not constitute tax, legal, or other professional advice. If you have questions, please contact your tax, legal, or other professional advisor.

Why is WP Engine collecting Indonesian value added tax (VAT)?

The Indonesian Government has enacted rules requiring Indonesian residents to pay VAT on digital services purchased from foreign businesses that exceed certain sales thresholds. Because WP Engine has exceeded these thresholds, the Indonesian Government has appointed WP Engine as a VAT collector. All VAT collected from Indonesian customers will be remitted to the Indonesian Government by WP Engine. The VAT rate is 11%.

Does Indonesian VAT apply to me?

Under Indonesian VAT rules, WP Engine will calculate and collect VAT on sales to all customers with an Indonesian address, including sales to consumers (B2C) and sales to businesses (B2B).

How do I enter my Indonesian Tax Registration Number into the User Portal?

If you are VAT registered in Indonesia, you may be entitled to recover the VAT paid on services provided by WP Engine. To enable you to recover the VAT, WP Engine relies upon your provision of a valid Indonesian Tax Registration Number to display on invoices.

Please visit your WP Engine User Portal. Click the “Update Contact Info” dropdown caret. Once here, enter your Tax Identification Number in the “VAT/GST ID” field and click Update.

Will I be retroactively charged for Indonesian VAT?

WP Engine will not retroactively charge customers for Indonesian VAT, but will charge VAT beginning November 1, 2023 on a prospective basis. VAT will be based on the invoice date.

Example 1

If an annual subscription renews and is invoiced on October 31, 2023, VAT will not be included on that invoice. However, the following annual renewal date of October 31, 2024 will include VAT. 

Example 2

If an annual renewal date is May 1, 2024, the renewal invoice will include VAT for the May 1, 2024 – April 30, 2025 period and no additional VAT will be added for the retroactive period of May 1, 2023 – April 30, 2024.

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