Under Indonesia’s rules, non-resident foreign firms which sell digital products and services in Indonesia worth at least 600 million rupiah (RM171,749) a year or which generate yearly traffic from at least 12,000 users will be required to pay the 10% VAT. — Reuters
JAKARTA: Indonesia has added more techology companies that will be obligated to apply 10% value-added tax on sales to Indonesian customers to include Facebook, Disney and TikTok, the tax office said in a statement on Aug 7.
South-East Asia’s biggest country, which has a population of nearly 270 million people, announced last month it will impose 10% VAT on sales by technology firms including Amazon, Netflix, Spotify and Google, as spending patterns shift with increased remote working amid the pandemic, which has hit government finances.
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