Indonesia slaps Netflix, Google, Amazon with 10% tax

Tuesday, 07. July 2020 13:00

Indonesia's tax office stated on Tuesday it imposed a 10% VAT on non-resident companies that sell digital products and services, including Netflix, Alphabet’s Google, Amazon Web Services and Spotify.

That means that companies that are earning $41,667 or more per year or companies that generate yearly traffic of 12,000 users or more, will need to pay this tax.

Tax office spokesman Hestu Yoga Saksama said that "with this appointment, digital products and services sold by these entities will be subject to VAT collection starting August 1." He also added that "the tax office will continue to communicate with relevant businesses abroad ... the number of companies assigned to apply VAT for digital products will likely increase."

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