Tax Court Maps Potential Disputes in the Digital Economy

Tax Court Judge Junaidi Eko Widodo presented a map of potential tax disputes in the digital economy on 5 November 2025 in Jakarta. He highlighted four main areas that could generate conflicts between taxpayers and the tax authority.

The first dispute involves Value‑Added Tax (VAT) when Electronic System Trading (EST) platforms such as Netflix or YouTube are audited. Additional conflicts may arise over the definition of VAT‑taxable items, the calculation of the Tax Base (DPP) and input‑tax credit, and the choice of exchange‑rate method used in reporting.

Junaidi urges the Directorate General of Taxes and the Ministry of Finance to issue clearer rules to lower dispute risk, and calls digital‑sector taxpayers to comply with existing regulations. The Tax Court also aims to strengthen judges’ expertise on digital transactions.