Indonesia to Impose VAT on Sales by Foreign Digital Entities

Govt to impose 10% VAT on sales of digital products or services made by overseas-based entities in a new rule, according to Hestu Yoga Saksama, spokesman for Finance Ministry’s tax office.

• Rule effective from July, Saksama says by phone
• Finance Ministry has held discussions with Communications Ministry, representatives of entities, banks and others to ensure smooth implementation
• Taxable products include rights in literature, arts or scientific work, patent, design or model, forms of intellectual property/industrial rights, motion picture films, among others, according to the rule published by the ministry
• Finance Ministry to appoint several entities that meet requirements as tax ...