The government has officially increased the Value Added Tax or VAT by 11 percent, which took effect on April 1. Furthermore, e-Money top-up and bank transfer fees will also be subject to 11 percent VAT.
Later, refilling e-Money balances will be subject to an 11 percent VAT tax takes effect from May 1, 2022. However, it is not the value that will be taxed by the government, but the charging service.
The rules regarding this matter are contained in the Minister of Finance Regulation (PMK) Number 69/PMK.03/2022 concerning PPh and VAT on the Implementation of Financial Technology. This regulation was set by Sri Mulyani Indrawati on March 30, 2022, and came into effect on May 1, 2022.
In Chapter III which regulates the treatment of VAT on the Implementation of Financial Technology, it is written that the provision of payment services in question is in the form of electronic money, electronic wallets, payment gateways, switching services, clearing, final settlement, and transfers of funds.
Then, Article 7 paragraph 2 explains the types of electronic money services in the form of top-up, cash withdrawals through other parties who cooperate with electronic wallet operators or using other channels, transaction payments, bill payments, fund transfers, and or pay later services.
Head of the Sub-Directorate of VAT, Trade, Services, and Other Indirect Taxes, Directorate General of Taxes at the Ministry of Finance, Bonarsius Sipayung, explained that tax imposition is calculated from services, not transaction value.
This means that when someone makes a top-up of Rp. 1 million with a service or administration fee of Rp. 1,000.
The 11 percent VAT is not calculated based on the transaction value of Rp. 1 million, but a service fee of Rp. 1,000. Therefore, the amount of VAT borne is Rp. 110. This applies equally to Go-Pay, OVO, DANA, and other electronic wallet users.
Furthermore, this also applies to top-up Go-Pay, OVO, DANA, and so on. In addition, the imposition of 11 percent VAT will also apply to fund transfer services. This means that if the fund transfer fee is IDR 6,500, then the VAT charged is IDR 715 per transaction.
