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Technology

Indonesia tells Google, Amazon and Netflix to collect 10% VAT

Government seeks more revenue to boost finances hit by pandemic response

Indonesia's tax office says that from Aug. 1, Amazon Web Services, Google, Netflix and Spotify must collect a 10% VAT on digital products and services sold in the country.    © Reuters

JAKARTA -- Indonesia will impose a value-added tax on global technology companies doing business in the Southeast Asian country as the government looks for extra tax revenue to boost state finances depleted in battling the economic effects of the COVID-19 pandemic.

The national tax office announced Tuesday that from Aug.1, Amazon Web Services, Google Asia Pacific, Google Ireland, Google LLC, Netflix and Spotify will need to collect a 10% VAT on all digital products and services sold in the region's largest economy.

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