Indonesia to impose VAT on internet giants from July

JAKARTA: Indonesia will require big internet companies to pay value-added tax on sales of digital products and services from July, a move that other countries may also adopt as they seek to boost revenues following the coronavirus pandemic.

Southeast Asia’s largest economy will impose a 10% VAT on digital products sold by non-resident internet companies with a significant presence in the Indonesian market, including streaming services, applications and digital games, beginning July 1, according to a regulation published on the finance ministry’s website.

Indonesian authorities have previously said services by streaming platforms like Spotify and Netflix would be among those subject to the new tax. Neither company responded to requests for comment.