Government Ensures Netflix Services To Skincare Don't Get 12 Percent VAT

Illustration (Photo: Doc. ANTARA)

JAKARTA - The government has ensured that the policy of increasing the value added tax rate (VAT) to 12 percent in 2025 will only apply to luxury services and goods.

This means that goods and services are currently consumed by many people, such as derivatives, clothing, skincare products, streaming services such as Netflix, Spotify is not subject to VAT rates to 12 percent or is still valid at 11 percent on January 1, 2025.

Minister of Finance Sri Mulyani Indrawati explained that the increase in VAT rates of 12 percent in 2025 only applies to goods and services which are currently subject to a luxury goods sales tax tariff (PPnBM) in accordance with the Minister of Finance Regulation (PMK) Number 15 of 2023.

"That category is very small, limited such as private jets, cruise ships and also very luxurious houses that have been regulated in PMK PPnBM Number 15 of 2023," Sri Mulyani said at a press conference at her office, Tuesday, December 31.

Sri Mulyani emphasized that other goods and services that have been affected by VAT by 11 percent will not increase VAT to 12 percent.

"So still 11 percent of all goods and services, which so far have been 11 percent, still 11 percent have not increased VAT for all goods and services which have been fixed. Goods and services that have received exceptions are 0 percent VAT, which is not paying VAT at all, namely goods related to staple foods," he said.

Sri Mulyani explained, 0 percent VAT tariff goods/services, namely, Rice, Corn, Soybeans, Fruits, Vegetables, Sweet potatoes, Wood potatoes, Sugar, Livestock and the results, fresh milk, Unggas, Slaughter Results, Rice-Padian, Nuts, Fish, Shrimp, Other Biotas, Seaweed, Train Tickets, airport tickets, and people's Transport.

Next, goods and services that remain subject to 0 percent VAT rates are such as Public Transportation Services and Rivers, Submission of Package Services, Travel Bureau Services, Government and Private Education Services, Textbooks, Holy Books, Health Services, Pension Fund Financial Services, Other Financial Services such as Credit Cards, Losses Insurance, and Life Insurance.

"All of them still get 0 percent VAT facilities and do not pay VAT, while all other service goods, which so far have remained 11 percent, have not been affected by an increase of 12 percent," he explained.

In addition, goods and services that have been free of VAT will also continue in 2025, such as staple foodstuffs, education services, health services, social services, public transportation services to simple homes.