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Jakarta Post

After Spotify and Netflix, govt seeks further tech taxation

  • Adrian Wail Akhlas


Jakarta   /   Mon, July 27 2020   /  01:00 am
Netflix smartphone(Shutterstock/sitthiphong)

The Taxation Directorate General is in talks with several more technology firms to collect value-added tax (VAT) on sales after recently imposing such rules on six firms, including Amazon and streaming platform Netflix. The tax office was in a negotiation process with the tech firms to ensure that they were “ready and comfortable” to impose VAT on their Indonesian customers, spokesman Hestu Yoga Saksama said during a discussion held by the Center for Indonesian Policy Studies (CIPS). “We are convinced that more tech firms will collect VAT this year,” Hestu told the discussion on Thursday. However, he declined to name the companies or reveal how much the government expected to earn from such policy. Under the new rules, nonresident foreign firms that sell digital products and services in Indonesia worth at least Rp 600 million ($41,038) a year or...