Indonesia Tax Agency Announces Appointment of Phase Two VAT Collection Entities for Digital Goods, Services

The Indonesian Directorate General of Taxation Aug. 7 announced the appointment of global entities for the collection of VAT on digital goods and services in phase two. Eligible phase two VAT collection entities include Facebook Ireland, Facebook Payments International, Facebook Technologies International, Amazon Services LLC, Audible, Inc., Alexa Internet, Audible, Ltd., Apple Distribution International, Tiktok, and the Walt Disney Company (Southeast Asia). The announcement includes: 1) the Sept. 1 collection start date; 2) the 10 percent VAT rate on digital products; 3) the 600 million Indonesian rupiah (US$40,984) per year or the 50 million rupiah (US3,415) per month sales threshold ...