VATLive > Blog > Indonesia > Indonesia extends VAT to further tech companies

Indonesia extends VAT to further tech companies

  • Sep 10, 2020 | Richard Asquith

Indonesia has added 10 more global technology companies to the list of non-resident businesses which must register and charge 10% Indonesian VAT on their sales.  This is the third round of naming mandated taxpayers, and comes into force from 1 October 2020.

The companies included in this round feature: LinkedIn, Twitter; Zoom, Jingdong and Shopee. In the last two rounds, Google, Amazon, Netflix and others were identified. Indonesia is following the route of identifying businesses by name rather than inviting all eligible businesses to register en mass. The registration threshold is Rupiah 600m.

Indonesia if following the global drive to include foreign providers of digital services in the VAT net. 12 countries, including Mexico and Chile, have adopted this measure in 2020 alone. With a further 16 likely to move ahead in the next 18 months.

Follow Avalara's global VAT on digital services tracker.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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