Required to Pay Tax, This Said Netflix

KOMPAS.com – The Directorate General of Tax (DGT) will begin to collect Value Added Tax (VAT) to trading companies through electronic systems (PPSME), such as Netflix, Spotify, and other foreign digital companies.

Tax withdrawal is regulated in Minister of Finance Regulation (PMK) Number 48 / PMK.03 / 2020, derived from Article 6 paragraph 13a of Perpu Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Covid-19 Handling.

This rule will take effect on July 1, 2020. Effective tax collection will take effect starting next August. Responding to this rule, Netflix as one of PPMSE’s subjects claimed to be ready to comply with applicable regulations.

Also read: Netflix et al’s Taxpayer Regulations Begin Today

“We have contacted the authorities in Indonesia and are waiting for further information regarding the implementation of this regulation,” explained Netflix Indonesia’s representative via text message to KompasTekno, Tuesday (6/30/2020).

When asked about the possibility of increasing subscription prices due to tax collection, the representative of Netflix admitted that he still could not provide certainty.

For information, the Netflix subscription price starts from Rp 109,000 per month for the basic package, which is access to one device with HD resolution.

Also read: Digital Tax Rules Apply, Get Ready for Netflix et al Subscription Fees

Then the standard package that can be accessed by two devices is pegged at Rp. 139,000.
While the premium package or Family Plan can be accessed by up to four devices, the price reaches Rp 169,000 per month.

Six companies are ready for 10 percent VAT

According to the Director of Counseling, Services, and Public Relations of DGT Hestu Yoga Saksama, after the PMK regulation No.48 came into force, the new government would appoint a taxpayer digital company.

Until now, said Yoga, there are already six companies that are ready to apply a VAT value of 10 percent.

Also read: Telkom Unblock Netflix This Week?

However, Yoga is reluctant to specify what companies are meant. The Director General of Taxes has also simplified the tax payment scheme for PPMSE, especially with regard to the document of proof of VAT collection.

“No need to change invoice“It is quite important that buyers in Indonesia include e-mail addresses registered with the DGT system,” explained Yoga.

Yoga added, companies simply need to change the e-mail list that their customers use. Later customer bills will be sent to e-mail registered with tax.

The company will accept invoice the invoice will be treated as a tax invoice that may be credited. In this way, it is hoped that digital companies do not need to change the system in their applications which takes a long time.

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