Government Confirms No VAT on QRIS and E-Money Payments

Jakarta, VIVA – Indonesian Coordinating Ministry for Economic Affairs Airlangga Hartarto said that the virtual payments through the Quick Response Code Indonesian Standard (QRIS) and e-Money, such as e-toll, are not subject to the 12 percent Value Added Tax (VAT).

"There is no VAT on QRIS transactions, just like with other debit card transactions," he said in Tangerang City, Banten, Sunday (Dec 22).

The 12 percent VAT will only be levied on the value of goods and services, not on the transaction system itself. This 12 percent VAT rate will come into effect on January 1, 2025, he said.

The minister explained that individuals using QRIS for transactions within Indonesia or in other countries that have adopted this virtual payment system will not be subject to the 12 percent VAT.

It is well-known that QRIS has been widely implemented in various Asian countries, including Indonesia, Singapore, Malaysia, Vietnam, and Thailand.

"Even if they conduct transactions in these other Asian countries using QRIS, no VAT will be applied. This clarifies that the payment system itself is not subject to VAT, as the VAT is levied on the goods and services," Minister Hartarto emphasized.

The same principle applies to the use of e-toll.

Furthermore, Minister Hartarto clarified that VAT will also not be applied to essential commodities.

He stated that essential food items such as wheat flour, Minyakita cooking oil, and industrial sugar will remain exempt from the VAT increase.

The 12 percent VAT rate will also not be imposed on toll road fees, healthcare services, and education services, with the exception of specific goods and services.

The specific types of goods and services that will be subject to the 12 percent VAT will be determined at a later date.