The Ministry Of Finance's DGT Affirms Spotify And Netflix, To YouTube Premiums Are Not New Paja Objects

The Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) emphasized that the imposition of Value Added Tax (VAT) on subscription fees for digital platforms such as Netflix, Spotify, YouTube Premium, and so on is not a new tax object.

Spotify, Netflix, and so on including trading services through the Electronic System (PMSE) that have been imposed. Not new taxes. So far, what has been paid by the community has taxes," said Director of Counseling, Services, and Public Relations of Dwi Astuti DGT, in Jakarta, quoted from Antara, Tuesday, December 24.

The imposition of VAT on digital platforms is regulated in the Minister of Finance Regulation (PMK) Number 60 of 2022 concerning Procedures for the Appointment of Supporters, Collection, Deposits, and Reporting of Value Added Taxes on the Use of Intangible Taxable Goods and/or Taxable Services from Outside the Customs Region in the Customs Area through Trade Through Electronic Systems.

The government has appointed PMSE actors to collect VAT. PMSE VAT collectors appointed by the Government are service providers who have met certain transaction values in 12 months or the number of accessors (traffic) exceeds a certain number in 12 months.

As of November 30, 2024, the Government has appointed 199 PMSE players, including the appointment of 7 new PMSE players in November. The details are Amazon Japan GK, Vowerk International & Co KmG, Huawei Service (Hong Kong) Co Limited, Sounds True Inc, Siteground Hosting Ltd, Browserstack Inc, and Total Security Limited.

Tax absorption from PMSE VAT received by the state throughout 2024 is worth IDR 7.58 trillion, with a total of IDR 24.5 trillion including deposits in other tax years.

In PMK 60/2022 it is also regulated that PMSE collection attracts VAT by 11 as of April 1, 2022 and increases to 12 percent in accordance with what is regulated in the law.

"So, it's not a new tax. Not because 12 percent was imposed. The increase was 1 percent, and it has been regulated since 2022," said Dwi.