Indonesia imposes 10% VAT on Amazon, Google, Netflix and Spotify

Indonesia on Tuesday imposed a 10% VAT on products by technology firms including Amazon, Netflix, Spotify, and Google as lockdowns forced a surge in spending patterns as well as remote working, which has hit state finances.

The Southeast Asian country’s tax office stated that it had already assigned tax identification numbers to Amazon Web Services, Netflix, Spotify, and Alphabet’s Google for its Google Asia Pacific, Google Ireland, and Google LLC units.

Non-resident foreign firms which sell digital products and services in Indonesia worth at least 600 million Rupiah ($41,667) a year or which generate yearly traffic from at least 12,000 users will be required to pay the 10% VAT.

A Netflix spokesperson told Reuters that they would comply with the new rules. However, spokespeople from Amazon Web Services, Google, and Spotify were not immediately available to comment.