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Direktorat Jenderal Pajak (DJP) — Berita·ID·

PENG-6/PJ/2026 Indonesia‘s VAT Collection Mechanism for Cross-Border Digital Transactions (SPP-TDLN)

PENG-6/PJ/2026 Indonesia‘s VAT Collection Mechanism for Cross-Border Digital Transactions (SPP-TDLN) Following the enactment of Minister of Finance Regulation No. 49 of 2026, the Directorate General of Taxes (DGT) hereby informs foreign merchants and service providers that Indonesia will implement the VAT Collection System for Cross-Border Digital Transactions (SPP-TDLN) effective 25 September 2026. The SPP-TDLN is a mechanism for collecting Indonesian Value Added Tax (VAT) on certain digital goods and digital services supplied to customers in Indonesia. What this means for foreign merchants and service providers Under the SPP-TDLN: foreign merchants and service providers must include Indonesian VAT in the price or amount payable by customers in Indonesia; Indonesian VAT may be collected through designated payment intermediaries or other entities appointed under Indonesian law; and as a result, the amount received by a foreign merchant or service provider may be reduced by the Indonesian VAT collected through the applicable payment mechanism. In practical terms, a customer in Indonesia pays an amount that includes Indonesian VAT, while the VAT may be collected through the designate

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