Microsoft, Alibaba Listed as Tech Firms That Must Pay VAT in Indonesia

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Tempo.co

Editor

Laila Afifa

Jumat, 9 Oktober 2020 12:42 WIB

TEMPO.CO, Jakarta - Indonesia added eight more technology companies, including Alibaba Cloud (Singapore) Pte Ltd and Microsoft Corp, to a list of businesses that must pay a 10% value-added tax (VAT) on sales.

The tax authority has named 36 companies including the latest additions as liable to pay VAT since July 7 when it listed Netflix Inc and Alphabet Inc’s Google Asia Pacific among other tech firms.

The other six named on Friday, Oct. 9, were GitHub Inc, Microsoft Regional Sales Pte Ltd, UCWeb Singapore Pte Ltd, To The New Pte Ltd, Coda Payments Pte Ltd and Nexmo Inc.

The companies in Friday’s announcement must start charging VAT to advertisers and other customers from Nov. 1, the Directorate General of Taxes said in a statement.

The companies were not immediately available to comment.

Non-resident foreign firms that generate annual sales of at least Rp600 million ($41,000) for digital products and services from at least 12,000 users in Indonesia are required to pay VAT, the authority said.

Read: Finance Ministry Eyes to Collect Digital Tax per August 2020

REUTERS

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