Indonesian Political, Business & Finance News

Is Strava Being Taxed? Here's the Real Story

| | Source: REPUBLIKA Translated from Indonesian | Economy
Is Strava Being Taxed? Here's the Real Story
Image: REPUBLIKA

Social media has recently been abuzz with claims that ‘Strava is being taxed’. Timelines were immediately flooded with memes, ranging from ‘next, breathing will be taxed’ to ‘better to just run offline’. While amusing, behind the jokes lies an interesting question: why did this issue provoke such an immediate reaction from Gen Z? For many people, Strava is not just an app for counting kilometres. For Gen Z, Strava has become part of a lifestyle. Waking up early to run, uploading pace results, and joining monthly challenges. It is that simple, yet it provides a zest for life. So, when the narrative about a tax emerged, the first reaction was not anger over the amount but a fear that the hobby they are building might suddenly feel ‘expensive’. Amidst the ‘in this economy’ situation, it is understandable. Is it true that Strava is now being taxed? The answer is not that straightforward. What is taxed is not the running activity itself, but the paid digital services provided by Strava, specifically if a user subscribes to its premium features. The transaction for the premium service falls under the category of Perdagangan Melalui Sistem Elektronik (PMSE), which is the trade of goods or services conducted through electronic systems or digital platforms. In Indonesia, digital services from foreign companies that meet certain criteria can be appointed as collectors of Pajak Pertambahan Nilai (PPN) on the services they sell to consumers in Indonesia. This means the tax is imposed on the transaction for purchasing a digital service, not on the sporting activity or the number of kilometres a user covers. Therefore, a person is not automatically taxed every time they open Strava or run five kilometres. The PPN is applied to the payment for premium services that are commercial in nature, similar to subscribing to a film or music streaming platform, cloud storage, or other digital applications. We also need to be more critical before joining the panic. In the social media era, a snippet of information can spread faster than its clarification. Not all viral news is automatically true. Sometimes, it is not the app that is taxed, but a specific digital service according to existing regulations. Unfortunately, sensational headlines often grab attention faster than a complete explanation. What is needed is not just making an issue go viral, but also improving digital literacy. Before reposting or creating content, it is better to seek out the context first. Because nowadays, half-true information is often more dangerous than outright false information. Ultimately, hopefully the only thing that keeps ‘running’ is us chasing our pace targets, not public trust running away due to miscommunication. And hopefully, sport remains an enjoyable space, not something that makes people think twice simply because they fear misunderstanding a viral issue.

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