Bank Indonesia Ensures QRIS Transactions Below IDR 500,000 Will Not Get 12 Percent VAT

JAKARTA - Bank Indonesia (BI) ensures that the 12 percent Value Added Tax (VAT) is not imposed on transactions using the QRIS payment system for transactions up to IDR 500,000.

For information, the government will officially implement VAT from 11 percent to 12 percent starting January 1, 2025.

This policy is the mandate of Law Number 7 of 2021 concerning Harmonization of Tax Regulations.

Based on the BI Instagram page @Bank_Indonesia, it is explained that the increase in VAT to 12 percent is only imposed on goods or services purchased by consumers, not on transactions used by consumers in QRIS or other non-cash transactions.

"This new tariff applies equally to all types of transactions, both cash and non-cash. So, the VAT imposed on consumers is only VAT on goods/services purchased and is not subject to VAT on transactions using QRIS or other non-cash payments," he explained in his official statement, Friday, December 27.

In addition, the imposition of VAT is only calculated from the service fee (service fee) imposed by the Payment Service Provider (PJP) to merchants, including the Merchant Discount Rate (MDR).

This VAT is not imposed on consumers, as has been the case so far.

Furthermore, BI has implemented a QRIS Discount Rate (MDR) Merchant of 0 percent since December 1, 2024, for transactions up to IDR 500,000 at the Micro Business Merchant (UMI). So, micro businesses are not subject to VAT rates, aka tax-free.

"Given that Bank Indonesia has implemented a 0 percent QRIS Merchant Discount Rate (MDR) since December 1, 2024, for transactions up to IDR 500,000 at the Micro Business Merchant (UMI), the VAT on the transaction's MDR is IDR 0," he explained.

"With this policy, Micro Business Actors (UMI) do not receive additional burdens and friends can still use QRIS," he added.