Netflix, Spotify Subscriptions Exempt from 12 Percent VAT Hike

Jakarta, VIVA – The Indonesian government has decided to maintain the 11 percent Value Added Tax (VAT) rate for streaming services such as Netflix and Spotify, forgoing a planned increase to 12 percent.

Finance Minister Sri Mulyani Indrawati clarified that the 12 percent VAT rate increase will only apply to luxury goods, including private jets, yachts, and ultra-luxury residences.

"For goods and services that have been subject to the 11 percent VAT rate, there will be no increase to 12 percent. So, all goods and services that were previously taxed at 11 percent will remain at 11 percent," she stated on Tuesday (Dec 31).

Minister Indrawati explained that the decision to maintain the 11 percent VAT rate for streaming services was made after considering the current economic conditions and the need to protect public purchasing power.

"Considering the current economic conditions and the need to maintain public purchasing power and create fairness, we have decided to maintain the 11 percent VAT rate," she said.

Meanwhile, the Head of the Bureau of Communication and Information Services at the Ministry of Finance, Deni Surjantoro, confirmed that with the 12 percent VAT rate increase only applicable to luxury goods, streaming services like Netflix will not be subject to the higher rate.

"Yes, it remains the same (11 percent VAT for Netflix). The point is, the 12 percent rate is only for luxury items," he stated.

Indonesia Announced VAT-Exempt Goods and Services

Indonesian President Prabowo Subianto emphasized that the increase in the Value Added Tax (VAT) rate to 12 percent, effective January 1, 2025, will only apply to luxury g

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2 Januari 2025