Regulation Watch · Tax Compliance · Indonesia
Indonesia Moves Foreign Digital VAT to the Payment Layer
DJP has implemented PMK 49/2026 through SPP-TDLN from 25 September 2026, allowing designated payment intermediaries to collect embedded VAT on foreign digital goods and services that are not already taxed by an appointed PMSE collector.
- Published
- Promulgated 20 July 2026 after issuance on 14 July 2026
- Effective
- PMK 49/2026 has applied since 20 July 2026; DJP's official implementation notice makes SPP-TDLN operational from 25 September 2026.
- Updated
- 29 September 2026
Who is affected
Foreign merchants and service providers supplying digital goods or services to Indonesian customers; Indonesian individuals and businesses buying foreign software, cloud services, online advertising, subscriptions, multimedia, data, or other digital supplies; PT PMA companies; taxable entrepreneurs; finance teams; and designated banks or non-bank payment issuers.
Practical impact
From 25 September 2026, SPP-TDLN operates alongside the existing PMSE VAT-collector system. A foreign merchant must include Indonesian VAT in the customer price for a covered supply, while a DJP-designated payment intermediary may collect that VAT before remitting the balance to the foreign merchant. For a transaction not already taxed by an appointed PMSE collector, the payment issuer seeks system confirmation at payment authorisation and collects VAT calculated as 11/111 of the VAT-inclusive payment. The issuer's bill statement or equivalent document can be treated as a tax invoice. A business may credit the VAT as input tax only when the document meets the regulatory requirements, including use of an email address or telephone number registered in DJP administration.
Late discovery: PMK 49/2026 was issued on 14 July, promulgated on 20 July, and became effective on promulgation. It remains actionable because businesses routinely buy foreign SaaS, cloud, advertising, booking, media, and data services, and the regulation changes how VAT may be collected and evidenced at the payment layer.
Implementation update: DJP published an official notice on 24 September 2026, revised it on 28 September, and confirmed that SPP-TDLN operates from 25 September 2026. Foreign merchants and service providers must include Indonesian VAT in the customer price for covered supplies. A designated payment intermediary may deduct and collect that VAT before transferring the remaining amount to the foreign supplier.
SPP-TDLN complements the existing VAT mechanism for foreign digital-commerce suppliers. It is directed at foreign digital transactions whose VAT is collected by someone other than a foreign PMSE business already appointed as collector. A designated bank or non-bank issuer sends transaction data for confirmation and collects VAT when the system confirms that the transaction is taxable.
The 11/111 calculation means the regulated payment is treated as VAT-inclusive. For finance teams, the key control is to distinguish VAT already embedded and collected through the payment channel from VAT collected by the supplier, then avoid adding or claiming the same tax twice.
The collection document can support input-VAT credit, but only if it contains the required transaction and party information and the buyer's email address or telephone number is registered with DJP. If no designated party collects VAT, PMK 49 expressly preserves the ordinary VAT treatment for the imported digital good or service.
Required action
- Map recurring foreign digital purchases and identify whether VAT is collected by the supplier as an appointed PMSE collector or through the payment issuer under SPP-TDLN.
- Use business payment details and ensure the email address or telephone number shown on the collection document is registered in the company's DJP profile before claiming input VAT.
- Retain the bill statement or equivalent collection document and reconcile the payment, VAT amount, transaction reference, supplier, and accounting entry before the VAT return is filed.
- Configure accounts-payable controls to prevent duplicate VAT recognition and to identify transactions for which no party collected VAT, because the ordinary VAT rules continue to apply to uncollected foreign digital purchases.
- For a cancelled transaction or VAT that should not have been collected, request the refund through the payment issuer and retain the correction or cancellation evidence.