Eko B. Supriyanto
THE GOVERNMENT has decided to raise the Value Added Tax (VAT) to 12%. While this represents a 1% increase, it translates to a 9.09% rise. Initially, the government assured that the 12% VAT would only apply to luxury goods. However, it has now been revealed that digital transactions like QRIS will also be taxed. Even more surprising is the fact that, despite already being subject to an 11% VAT, many people were unaware that they were being taxed on QRIS transactions. Not everyone understood that QRIS transactions have been taxed since 2022, and now several merchants are just realizing they are affected.
Surprisingly, it was only after the VAT hike to 12% that the public realized merchants were being taxed. Prior to this, the focus was primarily on convenience, with little attention given to taxation. The Infobank Institute reports that QRIS transactions have been successful and have grown significantly.
Bank Indonesia (BI) has played a pivotal role in encouraging the public to adopt QRIS, not only in Indonesia but also in several ASEAN countries, including Malaysia, Singapore, and Thailand, as well as in Japan and South Korea. QRIS has made payments easier.
According to the Infobank Research Bureau (BIR), the number of QRIS merchants reached 34.23 million by the end of September 2024, reflecting a growth of 17.85% compared to the same period in 2023. Compared to the end of 2023, this is an increase of 12.55%. The number of QRIS users has also surged. By the end of September 2024, there were 53.30 million users, a 27.4% increase compared to September 2023.
The same growth is evident in the electronic money sector. By the end of September 2024, the total circulation of electronic money reached 894 million, growing by 14.15% compared to the end of September 2023, and 10.35% compared to the end of December 2023. The total transaction volume for electronic money from January to September 2024 reached 15.6 billion transactions, an increase of 1.23% compared to the same period in 2023.
However, there are some points that merit attention. For example, many merchants claim to be micro enterprises. Banks, fintech companies, and acquirers should be conducting proper “know your merchant” checks to determine whether a business is micro, small, medium, or large. This is important because the costs associated with each classification differ.
There are even banks or fintech companies that, when recruiting merchants, promise to categorize them as micro businesses. However, these merchants are sometimes separated by banks, fintechs, or acquirers, and some aggregators’ licenses require clarification. These aggregators often function in various roles, such as acquiring, switching, and remittance. Aggregators assist fintech companies and banks in recruiting merchants without considering their business size, often categorizing them as micro enterprises to offer free services.
Returning to the issue of the VAT increase to 12%, it must be acknowledged that this will not significantly contribute to the state’s revenue if the QRIS merchants are classified as micro enterprises. For such businesses, the transaction fee is 0%, and only when transactions exceed IDR 500,000 does the fee increase to 0.3%. Small, medium, and large businesses face a higher fee of 0.7%. Educational services are subject to a special rate of 0.6%, while gas stations are taxed at 0.4%.
It is important to recognize that, given the limited financial literacy and digital understanding in our society, this VAT increase may cause confusion. Hopefully, this misunderstanding about the 12% VAT on QRIS transactions will serve as a turning point for the continued development of digital transactions. We must avoid a situation where people hesitate to use QRIS for fear of being taxed, when, in fact, the taxes apply to the merchants and not the consumers.
QRIS transactions are not luxury goods, so why should they be taxed? The primary issue the government faces here is communication. The narrative that VAT at 12% applies only to luxury goods is misleading. Essential daily transactions, such as e-money top-ups and QRIS payments to merchants, are now subject to VAT. We must ensure that this misunderstanding does not halt the growth of small, medium, and large merchants who are already bearing this burden.
Furthermore, it is crucial that the 12% VAT on electronic money, top-ups, and merchant transactions does not reverse the progress made in digital transactions, sending us back to a time when cash was the dominant payment method. There is a danger that the public may become fearful of using QRIS once they realize it is taxed. Let us not miscommunicate, for doing so could lead to widespread rejection of QRIS as a payment option.
Surprisingly, it was only after the VAT hike to 12% that the public realized merchants were being taxed. Prior to this, the focus was primarily on convenience, with little attention given to taxation. The Infobank Institute reports that QRIS transactions have been successful and have grown significantly.
Bank Indonesia (BI) has played a pivotal role in encouraging the public to adopt QRIS, not only in Indonesia but also in several ASEAN countries, including Malaysia, Singapore, and Thailand, as well as in Japan and South Korea. QRIS has made payments easier.
