JAKARTA - The COVID-19 pandemic that has hit Indonesia has made almost everyone work from home and not stay at home. Instead of working, people take advantage of music, film, or video streaming application services in their spare time or even to support work activities.
The users immediately exploded. Automatically, the benefits obtained from these application development companies are increasing
To that end, Minister of Finance Sri Mulyani will officially collect Value Added Tax (VAT) of 10 percent on digital imported products in the form of intangible goods starting July 1, 2020. Examples of these products include Netflix movie streaming service, Spotify music streaming, and Zoom webinar service. .
The rules for trading through an electronic system (PMSE) are already contained in Government Regulation in Lieu of Law (Perppu) Number 1 of 2020 concerning State Financial Policy and Financial System Stability.
Collections, deposits, and VAT reporting on digital products originating from abroad will be carried out by PMSE business actors, namely foreign traders or service providers, overseas PMSE operators, or domestic PMSE operators appointed by the Minister of Finance through the Director General of Taxes .
"The imposition of VAT on the use of digital products from abroad is part of the government's efforts to create level playing fields for all business actors, especially between domestic and foreign players, as well as between conventional businesses and digital businesses," said the Director. Counseling, Services and Public Relations of the Directorate General of Taxes Hestu Yoga Saksama in a written statement, quoted on Saturday, May 16.
According to Hestu, digital products and online services from abroad will be treated the same as conventional products consumed by everyday people that have been subject to VAT, as well as similar digital products produced by domestic businesses.
For technical matters, continued Hestu, PMSE business actors who meet the criteria for a certain transaction value or amount of traffic within 12 months, are appointed by the Minister of Finance through the Directorate General of Taxes as VAT collectors. Meanwhile, business actors who have met the criteria but have not been appointed as VAT collectors can submit notifications online to the Directorate General of Taxes.
Just like domestic VAT collectors, appointed business actors are also required to deposit and report VAT. Payment of VAT that has been collected from consumers must be made no later than the end of the following month. Meanwhile, the reporting is done on a quarterly basis, no later than the end of the following month after the quarter ends.
Complete arrangements regarding the procedures for collecting, depositing, and reporting VAT can be seen in Regulation of the Minister of Finance Number 48 / PMK.03 / 2020, and can be seen on the official website of the Directorate General of Taxes.
Meanwhile, said Hestu, the criteria and list of business actors appointed to collect Value Added Tax on digital products from abroad will be announced later.
"In addition to creating equality between business actors, the application of VAT on digital products from abroad is also expected to increase state revenue which is currently very important as a source of funding to overcome the economic impact of the COVID-19 outbreak," explained Hestu.
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