Indonesia adds Microsoft, others to list of tech firms that must pay VAT

In this news, we discuss the Indonesia adds Microsoft, others to list of tech firms that must pay VAT.

JAKARTA (Reuters) – Indonesia has added eight more tech companies, including Alibaba Cloud (Singapore) Pte Ltd and Microsoft Corp, to a list of companies that must pay a 10% value added tax (VAT) on sales.

The country’s tax administration has designated 36 companies, including the latest additions, as liable for VAT as of July 7, when it listed Alphabet Inc.’s Netflix Inc. and Google Asia Pacific among others. technology companies.

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

Businesses announced on Friday are expected to start charging VAT to advertisers and other customers from November 1, the Tax Directorate said in a statement.

The companies were not immediately available for comment.

Foreign non-resident companies that generate annual sales of at least 600 million rupees ($ 41,000) for digital products and services of at least 12,000 users in Indonesia are required to pay VAT, the authority.

(1 USD = 14670.0000 rupees)

Reporting by Tabita Diela; Editing by Christopher Cushing

Original © Thomson Reuters Corporation

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