Indonesia Imposes A 10% VAT On TikTok, Disney, and Facebook – Tax Office

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Indonesia has added to its list more major technology companies that will be required to apply a 10% value-added tax (VAT) on sales to Indonesian users to include TikTok, Disney, and Facebook.

As one of the biggest countries in Southeast Asia that has a population of about 270 million people made an announcement last month that they will be imposing a 10% VAT on sales by major tech companies including Google, Spotify, Netflix and amazing as the spending patterns tend to shift with more remote working amidst the coronavirus pandemic that has substantially been a setback to the government.

As one of the biggest countries in Southeast Asia, and with a population of about 270 million people, Indonesia announced last month that they will be imposing a 10% VAT on sales made by major tech companies including Google, Spotify, Netflix, and amazon as spending patterns start shifting with more people.

The extra firms announced on Friday to include more tech giants including amazon subsidiaries, The Walt Disney Company, Apple Distribution International Ltd, TikTok Pte Ltd, Facebook including their Amazon voice assistant Alexa and their audiobook unit Audible.

The tech companies did not immediately respond to these new measures.

Under the country’s rules, non-resident foreign companies that sell digital services and products in Indonesia worth over $41,039.67 annually that generates annual traffic of more than 12,000 users will be asked to pay a 10% VAT.

This is happening as the country, experts to record a 13 percent yearly decline in the state revenue in 2020 as the COVID-19 pandemic disrupts the normal business activities.

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