Last updated: March 31, 2022
Important Notice – VAT Rate Increase
In accordance with Law No 7 of 2021 on the Harmonization of Taxation Regulations, the VAT rate for AWS services will increase from 10% to 11% with effect from 1 April 2022.
As of 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. As such, AWS is required to charge VAT on services provided remotely to all Indonesian customers. AWS’s online pricing does not include applicable taxes, and VAT at 10% will be added to our charges for taxable cloud services and marketplace purchases.
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 here. 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 here.
All VAT collected from Indonesian customers will be remitted to the Indonesia tax authority by AWS.