It will impose 10% VAT on digital products sold by non-resident internet companies with significant presence in the Indonesian market, including streaming services, applications and digital games, beginning July 1, according to a finance ministry regulation published on the ministry's website. The government has previously said services by streaming platforms like Spotify and Netflix would be subject to the new tax. Products and services bought via Alphabet Inc's Google Play among others would also fall into the category, although the government has not named any companies other than Spotify and Netflix. Indonesia currently charges a 10% value-added tax on sales of most products and services. Consumers have been buying fewer physical goods, but demand for digital items has risen, Indrawati has said.

Source: bd News24 May 15, 2020 14:48 UTC