Indonesia Orders Payment Institutions to Collect VAT on Cross-Border Digital Transactions

• Indonesia’s MoF Regulation 49/2026 requires banks and other payment institutions to collect VAT on payments by domestic consumers to overseas suppliers of digital goods/services used in Indonesia, via the SPP-TDLN system.
• The rule excludes suppliers already appointed as VAT collectors for electronic-platform transactions and transactions that are VAT-exempt or not subject to VAT.
• VAT is deemed included in the payment and calculated at 11/111 of the amount paid; foreign-currency payments must be converted using the MoF exchange rate on the confirmation date.
• The collector must issue VAT collection evidence (e.g., bill statement) that can serve as a VAT invoice equivalent for input VAT credit if required taxpayer details are available; VAT must be remitted within seven days of confirmation.
• If VAT is overcollected or the transaction is cancelled/should not have been taxed, the proof must be corrected or revoked and the payer may seek a refund; self-assessment remains a fallback if the collector does not collect VAT.

Source: taxathand.com

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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