Bank Indonesia (BI) has confirmed that transactions using QRIS (Quick Response Code Indonesian Standard) under Rp500,000 will remain free from Value Added Tax (VAT) as the new 12% VAT rate takes effect on January 1, 2025. This exemption applies specifically to microbusiness (UMI) merchants, following BI’s recent implementation of a 0% Merchant Discount Rate (MDR) policy.

The 0% MDR QRIS policy, which came into force on December 1, 2024, eliminates any VAT obligations on MDR fees for transactions below Rp500,000. "VAT is only calculated on the service fees charged by Payment Service Providers (PJP) to merchants. For transactions under Rp500,000 at microbusinesses, the VAT on MDR is Rp0," BI explained in an Instagram post.

BI emphasized its commitment to supporting microbusinesses and encouraging cashless payments. "With this policy, microbusiness owners will not face additional burdens, and consumers can continue using QRIS without concerns," BI added.

While this exemption benefits microtransactions, the general 12% VAT increase will still apply to other goods and services. The Ministry of Finance has assured the public that the impact on inflation will be minimal. Dwi Astuti, Director of Public Counseling at the Directorate General of Taxes (DJP), stated, "The VAT increase contributes only 0.2% to inflation, which is currently at a low 1.6%."

Despite these reassurances, business stakeholders remain cautious about potential economic impacts. However, BI’s QRIS policy reflects its proactive approach to supporting microentrepreneurs and maintaining consumer purchasing power.