A widely circulating narrative on social media regarding the imposition of Value Added Tax (VAT) on running has drawn public attention. Public confusion was triggered by the government's move to appoint the fitness tracking application, Strava, as a VAT collector for Trade Through Electronic Systems (PMSE).
Responding to this, the Directorate General of Taxes (DJP) issued an official clarification to correct the misinformation. The tax authority emphasized that the subject of the tax is not the running activity itself, but rather the paid digital services transacted through the platform.
"Running is not taxed. Value Added Tax is only charged to users who purchase premium features or subscribe to exclusive services within the Strava application," explained the DJP officially.
This means that for people who use the free version of the application to record their daily physical activities, there is no additional tax obligation. The 12 percent VAT rate only applies when users pay for premium features (subscriptions) provided by the service provider.
The government's step to appoint Strava as a VAT collector is part of a systematic effort to create tax fairness in the digital economy sector. This policy ensures that every foreign digital service transaction enjoyed by consumers in Indonesia contributes to state revenue.
To date, 271 PMSE entities have been designated as VAT collectors. This policy is being implemented gradually for various international digital platforms that meet certain transaction value or traffic volume criteria in Indonesia, ensuring that tax regulations remain relevant to the current digital lifestyle of the public.
