Indonesia: 10% VAT tax on digital operators: Google, AWS, etc.
Jakarta:
July 13, 2020
Indonesian Ministry of Finance/General Administration of Taxation:
July 7,
Amazon Web Services (AWS),
Google, Google Asia Pacific,
Google Ireland,
Netflix International,
Spotify,
Announced that 10% value-added tax (VAT) will be collected from the service provided by 6 companies from August 1.
Minister of Finance Regulation No. 48:
A foreign company that does not have a permanent facility (PE) in Indonesia
Digital products and services (Note)
Sold in Indonesia,
Annual sales of more than Rp 600 million or more than 12,000 users per year
If you meet the conditions, you will be considered VAT taxable.
Service users are expected to pay an additional 10% VAT after August.
Tax Administration:
“In the future, it is expected that more companies will be subject to VAT tax in accordance with this rule,” he said.
Indonesia’s tax revenue in May fell by about 10% year-on-year to Rp444 trillion due to the spread of new coronavirus infection.
This taxation aims to stop financial deterioration (Jakarta Post, June 30)
US Trade Representative (USTR):
On June 2, announced the start of a survey for countries and regions that have introduced or are considering a digital service tax.
Indonesia was also targeted (see article on June 4, 2020).
(Note) What is the Minister of Finance Regulation No. 48 digital products and services?
Streaming movies/music,
online game,
Video phones are included.
-JETRO
https://www.jetro.go.jp/biznews/2020/07/6d9ba683369c1fb3.html