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.
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