Netflix, Spotify Subscriptions Exempt from 12 Percent VAT Hike
- VIVA.co.id/Anisa Aulia
Jakarta, VIVA – The Indonesian government has decided to maintain the 11 percent Value Added Tax (VAT) rate for streaming services such as Netflix and Spotify, forgoing a planned increase to 12 percent.
Finance Minister Sri Mulyani Indrawati clarified that the 12 percent VAT rate increase will only apply to luxury goods, including private jets, yachts, and ultra-luxury residences.
"For goods and services that have been subject to the 11 percent VAT rate, there will be no increase to 12 percent. So, all goods and services that were previously taxed at 11 percent will remain at 11 percent," she stated on Tuesday (Dec 31).
Presiden RI, Prabowo Subianto dan Menteri Keuangan Sri Mulyani
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Minister Indrawati explained that the decision to maintain the 11 percent VAT rate for streaming services was made after considering the current economic conditions and the need to protect public purchasing power.
Menteri Keuangan, Sri Mulyani Indrawati
- VIVA.co.id/Anisa Aulia
"Considering the current economic conditions and the need to maintain public purchasing power and create fairness, we have decided to maintain the 11 percent VAT rate," she said.
Meanwhile, the Head of the Bureau of Communication and Information Services at the Ministry of Finance, Deni Surjantoro, confirmed that with the 12 percent VAT rate increase only applicable to luxury goods, streaming services like Netflix will not be subject to the higher rate.
"Yes, it remains the same (11 percent VAT for Netflix). The point is, the 12 percent rate is only for luxury items," he stated.
Rupiah Menguat Hadapi Kekhawatiran Investor Soal Mundurnya Sri Mulyani dari Menkeu
Di pasar spot hingga pukul 09.12 WIB, rupiah ditransaksikan di level Rp 16.444 per dolar AS, menguat 38 poin atau 0,23 persen dari sebelumnya Rp 16.482 per dollar AS.
