Understanding Indonesia’s Tax Rules on Pre-Owned and Used Goods
Buying and reselling pre-owned or used goods is booming across marketplaces, consignment stores, and community groups, but the tax treatment isn’t always obvious for individuals and PT PMA sellers. Clarifications from the Directorate General of Taxes emphasize when transactions fall under VAT scope, how margins are treated, and which records you must keep.
Confusion usually starts with classification: are you selling as a casual individual or as a business repeatedly offering goods for profit. Guidance from the Ministry of Finance points to factors like frequency, scale, and organized activity—criteria that can flip a hobby into a taxable enterprise.
For VAT, the core issue is whether the supply of used goods is taxable and how to calculate the base. Many sellers adopt margin-based invoicing, ensuring VAT is computed on profit rather than the full resale price when rules allow.
Income tax also matters: once activity becomes systematic, profits are taxable, so keep purchase proofs, refurbishment costs, marketplace fees, and payout reports. Clean documentation supports accurate margin calculation, credible deductions, and smoother reconciliation with e-invoicing tools.
If you operate a store, warehouse, or online shopfront, build a “tax-ready” workflow: itemize costs, tag taxable vs. non-taxable supplies, and reconcile marketplace settlements monthly. Coordinated policies supported by the Coordinating Ministry for Economic Affairs aim to keep compliance predictable so you can scale inventory, not headaches.
Table of Contents
- When Used-Goods Sales Become Taxable
- VAT on Pre-Owned Goods: Margin vs Full Value
- Income Tax Rules for Resellers and PT PMA Sellers
- Required Records and e-Invoicing Compliance
- How to Classify Personal vs Business Transactions
- Key Guidelines from the Directorate General of Taxes
- Building a Tax-Ready Workflow for Online Stores
- Real Story How a Bali Reseller Improved Compliance
- FAQs About Used Goods Tax in Indonesia
When Used-Goods Sales Become Taxable
Many people in Indonesia love buying and selling secondhand items — from phones to furniture — but not everyone realizes these sales can be taxable. The tax rules for used goods depend on how often you sell and whether you do it as a business.
If you only sell occasionally, like clearing out old clothes, you’re usually not taxed. But when you run an organized store or online shop for profit, the Ministry of Finance may treat it as a business activity. Once that happens, both VAT (Value Added Tax) and income tax can apply.
To stay safe, ask yourself: do you buy with the intention to resell? Do you advertise regularly? Do you have repeat customers? If yes, then your activity is no longer casual. In that case, registering your business and charging VAT will protect you from penalties later.
VAT often confuses sellers of secondhand goods. The main rule in Indonesia is that VAT applies only when the seller is a taxable entrepreneur. But the tricky part is calculating the VAT base — is it on the full price or just the margin?
For pre-owned items, sellers can often use a margin-based VAT scheme. This means VAT is charged only on the profit made between the buying and selling price, not on the total resale amount. For example, if you buy a laptop for IDR 3 million and sell it for IDR 3.5 million, VAT applies to the IDR 500,000 margin only.
This system keeps resale businesses competitive and fair, especially for PT PMA companies dealing in refurbished or imported secondhand goods. Always check your invoices and input tax credits — they help ensure you’re not overpaying taxes.
Once selling used goods becomes a regular business, income tax kicks in. The Directorate General of Taxes views consistent reselling as a commercial activity, even if it’s online. You must report your profits, just like any other business.
For individuals, income tax is based on net profit after deducting expenses like purchase costs, marketplace fees, or refurbishment. PT PMA entities must follow corporate tax rules and file monthly and annual reports. Keeping clear documentation helps verify margins and claim deductions accurately.
Many small resellers skip bookkeeping, thinking it’s only for big stores. But even if your sales start small, proper records make it easier to show proof during audits and to grow your shop legally. Tax discipline builds credibility — something both local and foreign investors appreciate.
To prove your tax position, records are everything. Sellers must keep purchase receipts, repair costs, sales invoices, and payment proofs. These show how the margin is calculated and confirm the goods were genuinely pre-owned.
Indonesia’s move to e-Faktur (electronic invoicing) makes it easier to record transactions. You can generate invoices digitally, store them securely, and submit them through the official tax platform. This reduces errors and helps you claim valid input VAT credits.
For resellers using platforms like Tokopedia or Shopee, download monthly sales reports and match them with your bookkeeping. The Directorate General of Taxes may use data analytics to verify transactions, so clean digital records protect you from unnecessary penalties.
The line between hobby and business isn’t always clear. You might start by selling a few personal items but end up with regular buyers. The Ministry of Finance uses indicators like frequency, intention, and organization to decide if you’re running a business.
If you’re selling as an individual, your activity is casual — no need for VAT registration. But when your sales are systematic, recurring, and profit-driven, you must register as a Taxable Entrepreneur (PKP).
Example: selling your old bike once isn’t taxable. But buying and reselling bikes every month for profit is. Keep track of how often you list items and how much you earn. If it looks like a business, treat it as one — it’s safer and more professional.
The Directorate General of Taxes has issued clarifications to make secondhand sales clearer under VAT rules. They explain that taxation depends on the nature of the transaction, not just the product type.
Some used goods are exempt, like certain household items sold privately. However, if you operate under a business name or through online platforms, you may fall within the VAT scope. The DG of Taxes encourages all sellers to register and use e-Faktur to ensure compliance.
The Ministry of Finance and Coordinating Ministry for Economic Affairs continue updating regulations to match e-commerce trends. Their goal is to make tax compliance predictable while supporting digital entrepreneurs.
Running an online resale business means juggling listings, payments, and customer messages — but you can’t forget taxes. A tax-ready workflow saves you from chaos later.
Start by tagging every purchase and sale. Separate taxable and non-taxable items in your records. Use accounting software or spreadsheets to track profit margins, VAT, and fees.
Reconcile your bank and marketplace statements monthly. This keeps your VAT reports and income tax filings consistent. When audits come, you’ll have every proof ready — receipts, invoices, payout histories.
For PT PMA sellers, set up internal reviews every quarter. This habit builds compliance discipline and shows your business is transparent and responsible.
Meet Daniel Fischer, a 32-year-old German living in Canggu. He started selling secondhand surfboards online to support his passion for beach life. At first, it felt like a hobby — quick deals on Facebook groups, cash in hand, no worries.
Soon, his sales grew. He imported boards from Java, refurbished them, and sold them weekly. His friend told him that regular selling might count as business activity. Daniel panicked — he hadn’t paid VAT or filed taxes.
He visited a local consultant who explained the margin-based VAT rule. By registering as a Taxable Entrepreneur (PKP) under his PT PMA, Daniel could report VAT on his profits only. He started using e-Faktur, kept digital records, and submitted reports monthly.
The process turned chaos into clarity. Within six months, his store became fully compliant. Now he can sell confidently to expats and locals, showing every buyer a clean tax invoice. His takeaway: “Compliance isn’t scary — it’s part of running a real business in Indonesia.”
No, not if you’re selling casually. VAT applies only when you sell regularly for profit.
You can use the margin-based VAT scheme, which taxes only your profit margin, not the full sale price.
If your sales are frequent and structured, you may need to register as a business and report taxes.
Keep all receipts, invoices, and digital reports. They prove your margins and protect you in audits.
Not always. Personal or casual sales are exempt, but organized resale activity is taxable.
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