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 payment you received may be lower because Indonesian Value Added Tax (VAT) has been collected on the transaction in accordance with Indonesia’s VAT Collection System for Cross-border Digital Transactions (SPP-TDLN).

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

  2. Has my payment been charged an additional fee?

    No.

    The difference between the transaction amount and the payment you receive 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.

  3. Who collects the Indonesian VAT?

    The VAT is collected through a designated financial intermediary or another party appointed under Indonesian law as part of Indonesia’s VAT Collection System for Cross-border Digital

    Transactions (SPP-TDLN).

  4. 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.

  5. 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 and remittance are carried out by the designated party in accordance with Indonesian law.

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

    The mechanism applies only to transactions that meet the requirements under Indonesia’s applicable laws and regulations.

    Not all payments from Indonesia are subject to VAT collection.

  2. How can I identify the VAT amount collected?

    Where applicable, your payment statement or settlement report will indicate the amount of Indonesian VAT collected.

  3. Can I recover or claim a refund of the VAT?

    Refunds or adjustments, where applicable, are governed by the relevant provisions of Indonesian law.

    Please refer to the applicable guidance or contact the relevant authority for further information.

  4. 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 Ministry of Finance of the Republic of Indonesia; and
    • the official contact channels listed on the Government’s website, www.pajak.go.id.
  5. 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 VAT on the consumption of digital goods and services 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
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