Indonesia has added eight more foreign digital companies to a list of businesses that must pay a 10 percent value-added tax (VAT) on sales.

The companies named were Alibaba Cloud (Singapore) Pte Ltd, GitHub, Inc., Microsoft Corporation, Microsoft Regional Sales Pte. Ltd., UCWeb Singapore Pte. Ltd., To The New Pte. Ltd., Coda Payments Pte. Ltd, and Nexmo Inc.

In a statement, Director-General of the Indonesian Finance Ministry’s Directorate General of Taxes Suryo Utomo said these companies must start charging VAT on digital products and services to advertisers and consumers from 1 November.

Last year, Indonesia announced that Google, Facebook, Amazon, Twitter and Netflix, which are not registered in Indonesia but have revenue from consumers in the country, would be liable to VAT.

In April, the Indonesian government issued a digital tax regulation for global technology companies in the framework of a law on financial policies in response to the COVID-19 pandemic.

Accordingly, all foreign companies that made annual sales of 600 million Indonesian rupiahs (40,540 USD) from their digital products and services in Indonesia, or reported at least 12,000 visits per year will have to pay a 10 percent VAT.

Source: VNA