The Imposition Of VAT Tariffs On Electronic Money Transactions Is Not A New Tax Object

Illustration-(Photo: DOK ANTARA)

The Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) has opened its voice regarding the imposition of a 12-percent value added rate (VAT) on electronic money transactions and digital wallets (e-wallet).

Director of Counseling, Services and Public Relations of the Directorate General of Taxes Dwi Astuti conveyed that the imposition of VAT rates on services for electronic money transactions and digital wallets has so far been subject to VAT in accordance with the provisions of the Minister of Finance Regulation (PMK) Number 69 of 2022 concerning Income Tax and VAT on Financial Technology Implementation.

Dwi emphasized that the imposition of 12 percent VAT, which is the basis for the imposition of taxes, is not on the value of money filling (top up), the value of balance, or the value of buying and selling transactions, but will be imposed on consumers for the use of electronic money services or digital wallets.

"This means that electronic money services and digital wallets are not new tax objects," he said in an official statement, quoted on Sunday, December 22.

For example, in the simulation of the calculation of the Directorate General of Taxes, when the user refills (top up) electronic money, a digital wallet or e-wallet of Rp. 1 million with an administrative cost of top up, for example Rp. 1,500, and with the current imposition of an 11 percent VAT rate, the VAT that must be paid is Rp. 165, so the total cost becomes Rp. 1,665.

Meanwhile, with the imposition of a tariff of 12 percent later, the VAT that needs to be paid is IDR 180, bringing the total cost to IDR 1,680. So from this example, the difference in the increase in VAT by 1 percent is only IDR 15.

"This means that no matter how much the value of the money that is stopped up will not affect the VAT owed for the transaction, because VAT is only charged for the service fee for the top up. So, as long as the service service fee does not change, the basis for the imposition of VAT also does not change," he said.

In addition, Dwi explained that payment transactions through the Quick Response Code Indonesian Standard (QRIS) are part of the Payment System Service.

Therefore, for the delivery of payment system services by Payment System Service Providers (PJSP) to VAT-debt merchants in accordance with the provisions of PMK 69/PMK.03/2022 concerning Income Tax and Value Added Tax on Financial Technology Implementation.

"This means that the implementation of payment system services is not a new tax object. The basis for the imposition of VAT is the Merchant Discount Rate (MDR) which is collected by service providers from merchant owners," he explained.