Indonesia included eight more technological companies in to VAT payable companies list including Alibaba and Microsoft. These businesses must pay a 10% Value Added Tax (VAT) on its sales.
Total companies list reached 36 with the new additions of recent eight that includes Microsoft. Earlier on 7th July Indonesia included bigger names like Google Asia, Netflix into VAT list.
Few other names in the list are GitHub Inc, Microsoft Regional Sales Pte Ltd, UCWeb Singapore Pte Ltd, To The New Pte Ltd, Coda Payments Pte Ltd and Nexmo Inc.
The Directorate General of Tax clarified in a statement that these tech companies need to charge VAT from their advertisers with effect from 1st of November. The Criteria for VAT collection says any Non-Resident foreign company that has an annual sales of minimum 600 million Rupiah (1 USD = 14,670 Rupiah) for digital products and services.
As per new guidelines, a minimum of 12000 beneficiaries of above companies in Indonesia may required to pay VAT from Nov 1 as per Indonesian DGT.