Google Indonesia to impose 10 percent VAT on customers

Jakarta (VNA) – Technology giant Google in Indonesia has announced that it is ready to charge 10 percent of value added tax (VAT) on customers if required by the host country’s government.

The tax collection will be implemented after the regulations on digital tax are issued in this August.

Jason Tedjasukman, Head of Corporate Communications of Google Indonesia said that the firm will start the scheme on customers in Indonesia after relevant terms become effective.

Meanwhile, Hestu Yoga Saksama, Director of Counseling, Services, and Public Relations at Indonesia’s Directorate General of Tax said that there are some criteria on VAT charge on digital products for e-commerce users abroad. For example, the tax will be applied on those who sell digital goods to customers in Indonesia with transaction value exceeding 600 million rupiah (41,949 USD) in a year or 50 million rupiah per month, he said.

Hestu added that the definition of businesses subjected for VAT charging will base only on the value of transactions with buyers in Indonesia or access and access authority from Indonesia. The tax will not be imposed on goods or services enjoying tax exemption under the law, he said./.