Major digital platforms, including Netflix, Vidio, Google, and Apple, have implemented Indonesia’s 12% VAT policy on their services. Based on what was reported by Bisnis.com, this change affects video-on-demand subscriptions, app store purchases, and bundled services.

Netflix has adjusted its pricing structure to accommodate the tax increase. The subscription cost for its basic package on December 1, 2024, totaled Rp65,000, including Rp58,559 as the membership fee and Rp6,441 for VAT. As of January 1, 2025, the membership fee decreased slightly to Rp58,036, while VAT rose to Rp6,964, maintaining the total payment at Rp65,000.

A similar adjustment is seen in Vidio’s Platinum package. Based on a shared screenshot, users now pay Rp32,480, comprising Rp29,000 as the base fee and Rp3,480 as VAT. The VAT reflects 12% of the base price, aligning with the new policy.

However, Nailul Huda, Director of Celios, noted discrepancies in Vidio's VAT calculation. He explained that the base price for non-luxury goods should be calculated using the formula: price x (11/12). For Vidio’s case, the base price would be approximately Rp26,000, making the VAT amount Rp3,190. Thus, the total payment should only be Rp31,190, which is lower than what users are currently paying.

Google has applied the tax to purchases made in the Play Store, while Apple has adjusted its Apple One subscription costs. These changes reflect how global tech companies adapt to Indonesia’s evolving tax regulations.

Huda also highlighted the operational challenges of the VAT system, stating that outdated systems might cause platforms to overpay taxes, which would later need to be reclaimed. This issue further complicates the transition to the new tax rate.

Heru Sutadi, an ICT Institute executive, remarked on the timing of the policy announcement, which came on New Year’s Eve. He observed that the sudden shift to 12% VAT for digital platforms caused operational confusion. He added that any excess tax payments, even small amounts, could multiply significantly across millions of users.

SOURCE: BISNIS | PHOTO: SONORA