Zoom subscribers will have to pay 10% VAT in Indonesia starting October

Paid users of Zoom, arguably the go-to video conferencing platform in the pandemic era (what happened to you, Skype?), will have to fork out an additional fee for their subscription in Indonesia, as the government is set to impose value-added tax (VAT) on several online services to operate in the country.

In an email sent to paid subscribers this week, Zoom announced that starting Oct. 1, the Indonesian government will levy a 10 percent VAT to be borne by the customer. 

“This is to comply with the Taxation Directorate General’s mandate that Zoom charges VAT on sales to customers in Indonesia,” the announcement read.

The US-based tech firm added that customers who are tax-paying enterprises must register their tax identification numbers (NPWP) with the platform as part of the taxation drive.

Zoom offers a freemium service, with a free basic plan that allows up to 40-minute group meetings. Paid subscription packages, which offer unlimited group meetings among other perks, start at US$150 per year.

Zoom is not the only digital service to recently fall under the microscope of the Indonesian taxman. Recently, the directorate general announced that it is levying a 10 percent VAT on transactions with 11 other internet services, including LinkedIn, Skype, Twitter, and e-commerce giant Shopee.

Previously, in July, Indonesia imposed a 10 percent VAT on digital sales by the likes of Netflix, Amazon, Spotify, and Google as the country’s economy took a huge battering as a result of the pandemic.

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