JAKARTA (Reuters) – Indonesia will require big internet companies to pay value-added taxes (VAT) on sales of digital products and services from July as part of efforts to boost revenue amid the coronavirus pandemic, a tax official said on Friday.
FILE PHOTO: A smartphone with the Netflix logo lies in front of displayed “Streaming service” words in this illustration taken March 24, 2020. REUTERS/Dado Ruvic
It will impose 10% VAT on digital products sold by non-resident internet companies with significant presence in the Indonesian market, including streaming services, applications and digital games, beginning July 1, according to a finance ministry regulation published on the ministry’s website.
The government has previously said services by streaming platforms like Spotify and Netflix would be subject to the new tax. Neither company responded to requests for comment.
Products and services bought via Alphabet Inc’s Google Play among others would also fall into the category,…
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