Google Indonesia to impose 10 percent VAT on customers
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.
Jakarta (VNA) – Technology giant Google in Indonesiahas announced that it is ready to charge 10 percent of value added tax (VAT) oncustomers if required by the host country’s government.
The tax collection will be implemented after the regulationson digital tax are issued in this August.
Jason Tedjasukman, Head ofCorporate Communications of Google Indonesia said that thefirm will start the scheme on customers in Indonesia after relevant termsbecome effective.
Meanwhile, HestuYoga Saksama, Director ofCounseling, Services, and Public Relations at Indonesia’s Directorate Generalof Tax said that there are some criteria on VAT charge on digital products fore-commerce users abroad. For example, the tax will be applied on those who selldigital goods to customers in Indonesia with transaction value exceeding 600million rupiah (41,949 USD) in a year or 50 million rupiah per month, he said.
Hestu added thatthe definition of businesses subjected for VAT charging will base only on thevalue of transactions with buyers in Indonesia or access and access authorityfrom Indonesia. The tax will not be imposed on goods or services enjoying taxexemption under the law, he said./.
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Illustrative image (Source: Ted Crunch) 
