Indonesia

From 1 August 2020, Indonesian Value Added Tax (VAT) applies to the supply of cross-border digital services by non-residents to Indonesian customers. Although Amazon Web Services, Inc. (AWS) is established in the United States, it is appointed by the Indonesian tax authorities as PMSE (i.e. Trading Through Electronic System) VAT collector.  

AWS is required to charge VAT on digital services provided remotely to all Indonesian customers. AWS’s online pricing does not include applicable taxes, and VAT at 11% will be added to our charges for taxable cloud services.

If you are VAT registered in Indonesia, you may be entitled to recover the VAT paid on services provided by AWS. To enable you to recover the VAT, AWS relies upon your provision of a valid NPWP (i.e. Indonesian tax registration number) in the Tax Settings page. A tax invoice printed with your NPWP and legal business name will be issued to you and will also appear in your billing console after this date.

As such, if you are using AWS services for business purposes and are registered for Indonesian VAT, to ensure that you can recover the VAT charged you must update your master (payer) and each member (linked) account with your NPWP and legal business address in Indonesia in the Tax Settings page.

Tax invoices issued by AWS are available in the Bills section of the AWS Billing Console under the header “Tax Invoices”. We will include your NPWP on our tax invoices if you are registered in Indonesia and have shared your TRN with us.

AWS will remit all VAT collected from Indonesian customers to the Indonesia tax authority.

For information on how to receive a tax invoice from AWS please visit our Knowledge Centre-How do I get a VAT invoice from AWS?
 

At the moment of invoicing, AWS determines the location of each individual account, based on certain information, including your TRN, your Billing address and your Contact address. The result of AWS’ determination is shown as the “Tax Address” on the Tax Settings page of each account.

If you have a consolidated billing family, please note that each account is assessed individually: linked accounts do not inherit the Tax Address or the TRN of the payer account.

The payer account can view the Tax Address of all their linked accounts on their own Tax Settings page of each account.

For more information please see Tax Help- Location.

For more tax information relating to the AWS Marketplace, please visit AWS Marketplace- Tax Help for Buyers or AWS Marketplace- Tax Help for Sellers.

Further information about the application of VAT in Indonesia can be found on the website of the Direktorat Jenderal Pajak.

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