Heaptalk, Jakarta — Before it was finally decided to apply only to luxury goods, the increase in value-added tax (VAT) to 12% was reported to apply to all types of goods, including retail. The Indonesian Retailers Association (Aprindo) confirmed that none of its retail member companies have imposed a 12% VAT rate on consumers, as reported by CNN Indonesia.
“I’ve checked, and all those who are part of Aprindo have not set VAT to 12%. The retail businesses I have amounted to 20,000, but none have set 12%,” said Solihin, Chairman of Aprindo, as quoted by CNN Indonesia (01/03).
Previously, retailers planned to change the prices of goods before the official announcement of the VAT increase to 12%, which was explicitly for luxury goods and services. Following the recent announcement by President Prabowo Subianto emphasizing that the increase only applies to luxury goods, members of this association still impose the old rate of 11%.
However, other industry players, such as marketplace platforms Tokopedia and Shopee, prematurely applied the VAT increase to 12% on January 1. The public began complaining about the new rate through posts on social media X, especially those purchasing advertising features.
Providing refund mechanism
In response to these complaints, Tokopedia and TikTok E-commerce stated that they would refund sellers who were charged excess VAT when purchasing TopAds, a store and product promotion feature, on January 1, 2025, as reported by CNBC Indonesia. The refund mechanism will be credited to the ‘Earnings Balance.’
“We strive to comply with applicable regulations in Indonesia, including adjusting the VAT rate on the platform based on PMK number 131 of 2024. Sellers who experienced overpayment of VAT on January 1, 2025, will receive a refund to the ‘Earnings Balance’,” said Aditia, as quoted by CNBC Indonesia (01/03).
Similarly, Shopee stated they would refund the excess tax payment within seven working days. “Shopee has adjusted the decision to increase the VAT rate following PMK No. 131 of 2024. The excess tax payment made by Sellers will be refunded to the Seller’s Balance within seven working days,” stated Radynal Nataprawira, Head of Public Affairs at Shopee Indonesia.
The refund mechanism has been communicated to the affected sellers through the Shopee application. The overpayment was announced, and the system has been updated to follow the 11% rate.
