OFFICIAL INTERNATIONAL ANNOUNCEMENT NUMBER PENG-6/PJ/2026: Concerning the Mechanism for Collecting Indonesian VAT on Foreign Digital Transactions (SPP-TDLN)

PENG-6/PJ/2026 was issued in connection with the stipulation of Minister of Finance Regulation (PMK) No. 49 of 2026. In this case, the DGT has announced that Indonesia will implement the VAT Collection System on Foreign Digital Transactions (SPP-TDLN), which became effective from September 25, 2026.

Matters that need to be considered by traders and foreign service providers include:

1. Overseas merchants and service providers must include Indonesian VAT in the price or amount payable by customers in Indonesia;
2. Indonesian VAT may be collected through a designated payment intermediary or other party established under Indonesian law; and
3. As a result, the amount received by foreign traders or service providers may be reduced by the amount of Indonesian VAT collected through the applicable payment mechanism.

SPP-TDLN is basically an administrative mechanism to collect VAT on the use of digital goods and/or services from abroad that have become the object of VAT in Indonesia, so it is not a new tax or a new VAT rate determination. In practice, customer payments in Indonesia already include VAT, which can be collected through the SPP-TDLN mechanism before the net payment is transferred to the foreign traders or service providers.

For foreign traders or service providers that have been appointed as PMSE (e-commerce) VAT Collectors and have collected Indonesian VAT in accordance with applicable regulations, these transactions are not subject to the SPP-TDLN mechanism. Thus, the SPP-TDLN and the PMSE VAT Collector mechanisms are applied in accordance with the characteristics and conditions of each transaction. SPP-TDLN is part of the DGT’s efforts to ensure that VAT collection on digital economy transactions runs effectively and provides equal treatment for business actors in Indonesia.