NETFLIX AND SPOTIFY TAX

Hello, EnthusiasTST! ✨ We are back with our newest #iTSThursday.

During COVID-19 pandemic, many people need some entertainment like Spotify and Netflix. Before this pandemic, the consumer of this applications are mostly from Gen Z, who knew to his applications earlier than other generation. Now, the consumer are increasing from any group. Indonesian government immediately respond to this increasing consumer of Netflix and Spotify.

As of July 1, 2020, Indonesian government will impose taxes for all citizen who want to access the Netflix and Spotify. The tax that will be imposed by the customer is Value Added Tax (VAT) in amount of 10% of each transaction. Not only that, the government will also collect Income Tax from Netflix and Spotify. This is done by Indonesian government because of the increasing Indonesia’s digital transactions during the COVID-19 pandemic.

So, do you think that the imposition of Netflix and Spotify tax is suitable to be applied in Indonesia?

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