SPP-TDLN

OFFICIAL INTERNATIONAL NOTICE

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:

  1. foreign 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 designated payment intermediaries or other entities appointed under Indonesian law; and
  3. 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 designated payment mechanism before the remaining amount is transferred to the foreign merchant or service provider.

No new tax or VAT rate

The SPP-TDLN does not introduce a new tax and does not impose a new VAT rate. It is an administrative mechanism for collecting Indonesian VAT that is already applicable to the consumption of digital goods and digital services in Indonesia.

Foreign businesses already appointed as PMSE VAT Collectors

Foreign merchants or service providers that have already been appointed as E-Commerce (PMSE) VAT Collectors and collect Indonesian VAT themselves will continue to follow their existing VAT collection arrangements. Accordingly, the SPP-TDLN does not apply to transactions for which VAT is already collected under the existing PMSE VAT Collector mechanism. The two VAT collection mechanisms will operate side by side.

The SPP-TDLN forms part of the DGT’s efforts to maintain a fair, efficient, and reliable VAT system for Indonesia’s growing digital economy while ensuring a level playing field for businesses participating in the Indonesian market.

Further information, including frequently asked questions (FAQs) and contact information, is available on the official website of the Directorate General of Taxes at pajak.go.id/spp-tdln.

This announcement may be disseminated accordingly.

 

FAQ

  1. Why is the payment I received lower than the transaction amount?

    The amount of payment you received may be lower than the transaction amount because Value Added Tax (VAT) on digital goods and/or services is collected in accordance with Indonesia’s VAT Collection System for Cross-border Digital Transactions (SPP-TDLN).

    Where applicable, the VAT is collected through designated financial intermediary or other party appointed under Indonesian law before the remaining amount is remitted to you.

  1. Has my payment been charged an additional fee?

    No.

    The difference between the amount payable by the customer and the amount remitted to you does not represent a fee, commission, or charge imposed by the payment service provider or financial intermediary.

    It reflects the collection of Indonesian VAT under the applicable laws and regulations.

  1. Who collects the Indonesian VAT?

    The VAT is collected through designated financial intermediaries or other parties appointed under Indonesian law as part of Indonesia’s VAT Collection System for Cross-border Digital Transactions (SPP-TDLN).

  1. Does this mean I have to register for VAT in Indonesia?

    Not necessarily.

    Your obligations under Indonesian law depend on the applicable legal provisions.

    This VAT collection mechanism itself does not automatically create additional registration obligations.

  1. Do I need to remit the VAT to the Government of Indonesia?

    No.

    Where VAT has been collected through the SPP-TDLN mechanism, the collection, remittance, and other related obligations are carried out by designated financial intermediaries or other parties in accordance with Indonesian law.

  1. Which transactions are subject to this VAT collection mechanism?

    The mechanism applies to certain supplies of digital goods and/or digital services to customers in Indonesia that meet the requirements under Indonesia’s applicable laws and regulations.

    VAT will not be collected through SPP-TDLN if the transaction has already been subject to VAT under the PMSE VAT collection mechanism. VAT will also not be collected on transactions that are not subject to VAT or are exempt from VAT under Indonesian tax regulations.

  1. Where can I obtain more information?
    Please refer to:
    • the Official International Notice issued by the Government of the Republic of Indonesia;
    • the official guidance published by the Directorate General of Taxes of the Ministry of Finance of the Republic of Indonesia; and
    • the official contact channels listed on the Government’s website, www.pajak.go.id.
  1. Who should I contact if I have questions about my payment?

    If your inquiry relates to:

    Your payment or settlement amount

    Please contact your payment service provider or financial intermediary.

    Indonesia’s VAT collection mechanism or applicable regulations

    Please refer to the Ministry of Finance of the Republic of Indonesia through the official contact information provided on its website.

    Additional Information

    Indonesia’s VAT Collection System for Cross-border Digital Transactions (SPP-TDLN) is designed to facilitate the collection of Indonesian VAT on certain digital goods and/or services supplied to customers in Indonesia in accordance with the applicable laws and regulations.

    This mechanism supports an efficient, transparent, and consistent VAT collection process while providing greater certainty for businesses engaged in cross-border digital transactions.

Term

Meaning

Customer

A purchaser located in Indonesia.

Foreign Merchant

A seller or service provider located outside Indonesia.

Financial Intermediary

A bank, payment institution, or other party designated under Indonesian law to collect VAT.

VAT

Indonesian Value Added Tax.

SPP-TDLN

Indonesia’s VAT Collection System for Cross-border Digital Transactions.
File
FAQ SPP TDLN_2026.pdf
PMK 49 Tahun 2026.pdf
  • 476 kali dilihat