Online Game Top-Up Will Be Subject to VAT Tax of 10%, Effective July 1, 2020

Gamenization – On July 1, 2020, the policy regarding VAT tax for online game top-ups will be applied to online game top-up purchases from abroad. This policy is enforced by the Director General of Taxes because online game top-ups are included in the digital transaction process originating from abroad.

The system, collection, deposit, and reporting will be carried out by PMSE, which is a foreign service provider who will be appointed by the Minister of Finance through the Director General of Taxes. This policy may have an effect on currency prices in online games, but the developers of well-known online games have not yet spoken up.

Many gamers who often do top-ups complain about the tax policy because they spend even more money if they want to top-up. Even well-known online games such as PUBG Mobile, Free Fire, Mobile Legends, Call of Duty: Mobile will be affected by the application of the 10% VAT tax, possibly the price of online game currency will increase.

It turns out that not only online game top-ups are affected by the tax policy, digital products such as music streaming, movie streaming, online applications are also affected by the VAT tax policy. If we as online game players respond calmly to this policy because this is the government’s effort to create equality of business actors in the country, so we will respond well and wisely.