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Notice of Tax Rule Changes in Indonesia

Sep 21, 2020

Dear customer,

The Indonesia Value Added Tax (“VAT”) applies to the supply of cross-border digital services by non-resident service providers to Indonesian customers. Alibaba Cloud was appointed by the Indonesian Ministry of Finance as a VAT collector. As such, beginning on November 1, 2020, Alibaba Cloud is required to charge the Indonesian Value Added Tax (“Indonesia VAT”) at the rate of 10% on electronic services provided remotely to Indonesian customers. All VATs that are collected from Indonesian customers will be remitted to the Indonesian tax authority. If you are VAT registered in Indonesia, you may be entitled to recover the VATs paid on services provided by Alibaba Cloud. To recover the VATs, Alibaba Cloud relies upon your provision of a valid NPWP (Indonesian tax registration number) in each of your Alibaba Cloud accounts. A tax invoice printed with your NPWP and legal company name will be issued to you.

From September 24, 2020, Alibaba Cloud will prompt Indonesian enterprise customers (the enterprise main account that pays directly to Alibaba Cloud) that do not fill in the NPWP to complete it during the purchase process. You can also go to the Billing -Tax ID Management page and fill it in by yourself. If you need to modify the company address of your account, please go to the Basic Information page. If you need to modify the company name of your account, please submit a ticket.

From November 1, 2020, Indonesian enterprise customers that do not fill in the NPWP cannot purchase or renew cloud services. Therefore, please make sure to fill in the NPWP before November 1, 2020.

If you have any further questions, please feel free to contact your Alibaba Cloud business representative or our support team by opening a support ticket through the console.

Thank you for your ongoing support.

Alibaba Cloud