- Indonesian government introduced Presidential Regulation No. 68 of 2025 to improve VAT collection from cross-border digital transactions
- Regulation took effect on 5 June 2025
- Aims to enhance revenue collection through a tech-based system for VAT on cross-border digital services
- New system called Tax Collection System on Cross-Border Digital Transactions or SPP-TDLN
- Focuses on VAT collection for cross-border digital transactions using a technology-based system
- PT Jalin Pembayaran Nusantara designated to operate the system
- TDLN refers to digital transactions involving services or information exchange through electronic media
- Objectives include addressing complexity of taxing cross-border digital transactions, improving fairness, enhancing compliance, and optimizing state revenue
- PT Jalin selected for its experience in financial and payment technologies and secure data-handling capacity
- PT Jalin responsible for trial phase, ensuring system reliability, collecting VAT, maintaining system security, and providing support and maintenance
Source: ahp.id
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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