Starting To Be Taxed In July, Get Ready For Netflix Cs Costs Will Increase In August And Beyond

Illustration. (Didi Kurniawan / VOI)

JAKARTA - For subscribers of paid service providers for streaming movies, videos, games and music such as Netflix, Spotify, Zoom, and others, in the next few months, they must be prepared to experience increased costs. This is because the government will collect a value added tax (VAT) of 10 percent on these platforms.

The regulation is contained in the Minister of Finance Regulation (PMK) number 48 of 2020 and will take effect on July 1, 2020. However, the increase in subscription fees is expected to take effect only in August 2020 because the government will not immediately collect taxes in July.

The Director General of Taxes (DJP) Suryo Utomo discussed this on Monday, June 1. According to him, the government through the DGT will first appoint business actors as tax collectors. This means, he said, PMK will only be implemented in the following month even though the regulations came into effect in July.

"When will the collection be carried out, yes, after we have appointed business actors and determined them as VAT collectors. If they have not been determined as VAT collectors, then we are not entitled to collect," said Suryo.

Suryo added that the collection of VAT taxes on types of digital goods and services on July 1 did indeed use a new method, in which the government appointed digital companies as collectors, depositors, and VAT reporters on these products.

Suryo said, whatever goods and services are sold in Indonesia, consumers in Indonesia who consume them must pay VAT. This is in accordance with the 1983 VAT Law.

As time goes by and technology is growing rapidly, the goods and services consumed by the Indonesian people do not have a digital alias and are traded via electronic systems (PMSE) or e-commerce.

For this reason, in order to increase state income amid the increasingly massive consumption of digital goods and services, the government issued Perppu No.1 / 2020 which has now been enacted as a law.

From there the government also makes derivative rules as its implementation, namely PMK Number 48 of the Year concerning Procedures for Appointment of Collectors, Collection and Deposit, as well as Value Added Tax Reporting on the Use of Intangible Taxable Goods and / or Taxable Services from Outside the Customs Area in the Region Customs Through Considering Trade Through Electronic Systems.

The massive consumption of digital goods and services, especially when the COVID-19 hit Indonesia. This condition makes almost everyone work from home and not leave the house (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

For this reason, 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.

Director of Counseling, Services, and Public Relations at the Directorate General of Taxes Hestu Yoga Saksama previously said that the collection, deposit and reporting of VAT on digital products originating from abroad will be carried out by PMSE business actors, namely foreign traders or service providers, overseas PMSE organizers. , or domestic PMSE operator 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 Hestu. .

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.

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.