Cinema Screenings Exempt from VAT, Government Rules Explained

Jakarta, 27 October 2025 – The Indonesian government announced that cinema film screenings are classified as arts and entertainment services exempt from VAT, under Minister of Finance Regulation No.70/2022. The exemption removes value‑added tax from cinema ticket sales. The announcement was reported by DDTCNews on Monday.

PMK 70/2022 lists twelve arts and entertainment services that are VAT‑free, including film showings, music and dance performances, beauty contests, exhibitions, circus acts, horse racing, and recreational rides. Two services remain taxable: provision of golf facilities and digital streaming of films or audiovisual content via the internet. The rule aligns with Law No.7/2021 on Tax Regulation Harmonization and Law No.1/2022 on Central‑Regional Fiscal Relations.

The VAT exemption means cinema operators will not add tax to ticket prices, potentially lowering costs for audiences. Businesses gain clarity that only the specified services such as golf venues and OTT streaming are subject to VAT, guiding compliance.