Jakarta -The increase in VAT to 12% officially takes effect starting tomorrow, January 1, 2025, for luxury goods. The luxury goods referred to are those currently subject to the Luxury Goods Sales Tax (PPnBM).
The item is listed in the Minister of Finance Regulation (PMK) number 15 of 2023. Outside of luxury goods, Finance Minister Sri Mulyani Indrawati emphasized that the VAT provisions remain unchanged, still at 11% or 0% as previously applicable.
Sri Mulyani was asked about the VAT regulations for several products such as Wagyu and subscription streaming services like Spotify and Netflix.
He only mentioned that the previous VAT regulations will also apply tomorrow.
“The others that have been at 11% all this time have not increased.” So starting from shampoo, soap, and all sorts of things that have often been seen on social media, there is actually no increase in VAT. “We will also soon issue a PMK,” explained Sri Mulyani at a press conference at the Ministry of Finance office, Central Jakarta, Tuesday (31/12/2024).
Previously, those products were reported to be affected by a 12% increase in VAT. On that occasion, the State Treasurer also emphasized that nothing will change between today and tomorrow.
“Yes, tomorrow there will be no impact, it will remain the same as usual between today and tomorrow, there will be no change.” So, everything will continue as usual, there will be no change in the 12% VAT,” he said.
Meanwhile, the Head of the Bureau of Communication and Information Services of the Ministry of Finance, Deni Surjantoro, also stated the same thing. When asked about the increase in VAT to 12% on online streaming services, he only emphasized that apart from goods categorized as luxury, the VAT provisions remain unchanged as they are now.
“No, it’s not happening since it was already announced.” In essence, apart from that (luxury items), everything else remains as it is now,” he asserted.
