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

The Indonesian Directorate General of Taxation Dec. 28, 2020, announced the appointment of six global entities and the revocation of one entity’s status for the collection of VAT on digital goods and services. The eligible six VAT collection entities include the Etsy Ireland Unlimited Company, Proxima Beta Pte. Ltd., Tencent Mobility Limited, Tencent Mobile International Limited, Snap Group Limited, and Netflix Pte. Ltd. The agency revoked the status of PT Fashion e-services, Indonesia as a VAT collector. The announcement includes: 1) the Jan. 1, 2021, collection start date; 2) the 10 percent VAT rate on digital products; and 3) documentation ...