Indonesia Introduces New VAT Collection System for Cross-Border Digital Transactions

Indonesia has introduced a new VAT collection mechanism for cross-border digital transactions under Minister of Finance Regulation No. 49 of 2026.
The SPP-TDLN applies to certain digital goods and digital services supplied by foreign sellers and service providers to Indonesian customers.
Foreign providers must ensure Indonesian VAT is included in the amount charged, with VAT potentially collected by designated payment intermediaries or other appointed entities at the time of payment.
The measure does not change Indonesia’s VAT rate or create a new tax; it is an administrative collection mechanism for VAT already due on digital services.
Businesses already appointed as PMSE VAT Collectors will continue under the existing system, and SPP-TDLN will not apply to transactions where VAT is already collected that way.

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.