Indonesia activates payment-based VAT collection for foreign digital supplies

The Foreign Digital Transaction Tax Collection System, or SPP-TDLN, implements Minister of Finance Regulation PMK 49/2026. It does not introduce a new tax or change Indonesia’s VAT rate. Instead, it uses payment-system information to collect VAT on imported digital intangible goods and digital services where VAT has not already been collected under the existing electronic-commerce, or PMSE, mechanism. That limitation is intended to prevent the same transaction being taxed twice.^[1][2]

Six issuers begin collection

The first designated issuers are Bank Rakyat Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Tabungan Negara, Bank Syariah Indonesia and LinkAja. Other issuers are undergoing sandbox and stabilisation testing. PMK 49 permits designation only after operational readiness has been tested, making payment issuers responsible for identifying qualifying cross-border digital payments and applying the collection rules.^[1][2]

Collection occurs when the system confirms the transaction

For an in-scope transaction, the foreign seller must include VAT in the price. The designated issuer collects an amount equal to 11/111 of that VAT-inclusive price when SPP-TDLN confirms the transaction. Before authorising payment, the issuer must transmit prescribed transaction data. Its collection document must identify the issuer, seller and buyer, state the collection date and reference number, and show the tax base and VAT. Amounts collected must generally be remitted through the system within seven days.^[2]

Foreign digital suppliers and multinational groups should determine whether each supply is already covered by a designated PMSE collector and ensure their pricing and payment data support that status. Issuers need controls for classification, data exchange, receipts, remittance and corrections. Business buyers should retain the issuer’s collection evidence—treated as a tax invoice where the statutory details are present—and check that VAT has not been charged both by the supplier or platform and again through SPP-TDLN.^[1][2]