DGT: 12% VAT Overpayment to Be Refunded
The government has officially stipulated that the increase in Value Added Tax (VAT) from 11% to 12% will apply exclusively to luxury goods and services. Meanwhile, the VAT rate for other goods and services remains at 11%, consistent with the regulation in effect since 2022.
However, the 12% VAT rate has been applied to several digital transactions, even when the products or services purchased do not fall under the luxury category. In response to this, the Directorate General of Taxes (DGT) under the Ministry of Finance has assured taxpayers that any 12% VAT paid in 2025 for non-luxury goods or services can be refunded. Citing Kontan.co.id, Director General of Taxes, Suryo Utomo, explained that the agency is currently drafting the refund mechanism.
"If there is an overcharge, it must be refunded. The mechanism can vary depending on the situation. It could be a direct refund to consumers or through invoice corrections. No issues," Suryo stated during a press conference in Jakarta on Thursday (2/1).
Tax Refund Mechanism Underway
The Ministry of Finance’s Special Advisor for Tax Compliance, Yon Arsal, reaffirmed the government's commitment to safeguarding taxpayers' rights. "In cases where the VAT rate should have been 11% but was mistakenly charged at 12%, the overpayment will be refunded. The refund mechanism is currently being prepared and will be announced shortly," Yon confirmed.
He also noted that the early announcement of the rate adjustment on December 31, 2024, should limit the number of affected taxpayers. "Hopefully, only a small number of cases will arise due to the early notification," he concluded.
Previously, it was reported that several digital platforms, including Google, Apple, Shopee, and Tokopedia, had applied a 12% VAT rate. For example, Apple One subscribers pay IDR 149,000 per month, with IDR 15,964 allocated for the 12% VAT.
Similar cases were found in ad credit services on Shopee and Tokopedia, where consumers were charged an additional 12% of the transaction value. For instance, for a purchase of IDR 100,000 in ad credits on Tokopedia, consumers paid IDR 112,000 after including VAT. (KEN)
