QRIS Service Fees Will Be Charged 12% VAT Too

The public needs to understand that starting next year, service fees for using the Quick Response Indonesian Standard (QRIS) will be adjusted in line with the increase in the Value-Added Tax (VAT) rate to 12 percent. According to the Directorate General of Taxes (DGT) at the Ministry of Finance, a 12 percent VAT will be applied to QRIS services. The DGT explained that this VAT imposition is due to QRIS transactions being categorized as a payment system service.

These services are part of the provision of services by Payment System Service Providers (PSSPs) to merchants and are subject to VAT under the provisions of the Minister of Finance Regulation (PMK) No. 69/PMK.03/2022 regarding Income Tax and Value-Added Tax on the Organization of Financial Technology. Therefore, this VAT imposition is not a new tax but a continuation of existing regulations. As a result, QRIS service fees will be subject to a 12 percent VAT.

In its statement, the DGT clarified that the basis for VAT calculation is the Merchant Discount Rate (MDR) collected by service providers from merchants. Hence, the VAT is not applied to payment transactions made by QRIS users but rather to the MDR fees charged to merchants.

As an example, if in December 2024, a buyer named Agus purchases a smartphone worth IDR 5 million, the VAT charged would be IDR 550,000, bringing the total payment Agus needs to make to IDR 5,550,000. The method of payment, whether using QRIS or other payment options, does not affect the amount of VAT owed. This reaffirms that payment system services through QRIS are not a new taxable object.

Additionally, the increase in the VAT rate from 11 percent to 12 percent is mandated by Law No. 7 of 2021 on the Harmonization of Tax Regulations. Based on an agreement between the government and the House of Representatives, this increase is implemented gradually, starting from 10 percent to 11 percent on April 1, 2022, and then to 12 percent on January 1, 2025.