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Value-added Tax on Netflix Now Active

Netflix logo | Photo: Freepik.com

Value-added Tax on Netflix Now Active
Andi Nugroho Diposting : Senin, 03 Agustus 2020 - 15:18 WIB

Cyberthreat.id - Streaming platform Netflix, among other streaming platforms, is applying a government imposed value added tax to its prices starting in August.

"As informed in the media, the Government of Indonesia will impose Value Added Tax (VAT) on digital services, including Netflix, starting August 1, 2020," Netflix said in a written statement as quoted by Antaranews.com, Saturday (August 1, 2020).

The latest Netflix subscription fee is subject to VAT of 10 percent. For example, the Cellphone Package rose from Rp 49,000 to Rp 54,000 after tax, while the Basic Package became Rp 120,000 from Rp 109,000.

Furthermore, the Standard Package, now Netflix charges a fee of Rp 153,000 from the previous Rp 139,000. Premium Package customers must now pay Rp 186,000 from Rp 169,000.

The Ministry of Finance's Directorate General of Taxes began Aug. 1 to collect VAT for imported digital goods and services sold to Indonesian consumers.

The Directorate General of Taxes said in July there were six companies that would be levied VAT in the first wave, namely Netflix International B.V, Spotify AB, Amazon Web Services Inc., Google Asia Pacific Pte. Ltd, Google Ireland Ltd and Google LLC. []

#Netflix   #Streaming   #Tax   #Indonesian   #Government

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