Indonesia: Financial Technology Implementation Services (Fintech Services), Digital Wallet will be subject to 11% VAT starting May 1
The Indonesian Government will begin collecting VAT on financial technology services on 1 May 2022, according to the latest Finance Ministerial Regulation No. 69/PMK.03/2022 signed by Finance Minister Sri Mulyani on 30 March 2022.
It was previously established that the service is subject to tax. The new policy levies VAT on service fees provided by parties that facilitate digital transactions (i.e., service fees associated with putting money into a digital wallet), as opposed to VAT on the total value.
The VAT is imposed at the rate of 11% on the top-up service fee. This also covers VAT on:
- Online loans or P2P lending (peer-to-peer lending)
- Fintech services such as:
- payment services;
- crowdfunding;
- investment management;
- online insurance; and
- digital financial support services.
Source: jdih.kemenkeu.go.id
