- The government will refund money collected from digital services due to a VAT miscalculation
- President Prabowo Subianto clarified that the new 12 percent VAT, effective from January 1, 2025, applies only to luxury items like yachts and private jets
- Indonesia has had an 11 percent VAT since 2022, which should not impact services like Spotify
- The late announcement led some platforms to incorrectly apply the 12 percent VAT
- Suryo Utomo, director-general of taxes, acknowledged the late policy announcement and confirmed plans to refund excess taxes collected
- Yon Arsal from the Finance Ministry indicated that the method of refunding the overcharged taxes is still being decided, with compensation being considered
Source: jakartaglobe.id
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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