DGT on 3 Roles of Issuers in VAT Collection on Digital Transactions

JAKARTA, DDTCNews - Director General of Taxes, Bimo Wijayanto, has appointed 6 issuers as other parties responsible for collecting VAT on digital transactions through the tax collection system for cross-border digital transactions (sistem pemungutan pajak atas transaksi digital luar negeri/SPP-TDLN in Indonesian).

Referring to Minister of Finance Regulation (MoF Reg.) 49/2026, an issuer is a bank or non-bank institution that provides services to facilitate payments for cross-border digital transactions conducted by goods beneficiaries and/or service beneficiaries.

"The SPP-TDLN has been live since 25 September 2026, with 6 issuers, i.e., 5 banks and 1 fintech," he said, as quoted on Tuesday (6/10/2026).

In his presentation, Bimo noted there are 3 roles of issuers as other parties in implementing the VAT collection mechanism through the SPP-TDLN. First, collecting VAT on cross-border digital transactions that fulfil the applicable provisions.

Second, remitting the collected VAT to the SPP-TDLN operator. The SPP-TDLN operator is then obliged to remit it to the state treasury. Third, filing the VAT collection in the Periodic VAT Return.

Accordingly, issuers do not merely serve as providers of means of payment for cross-border digital transactions. Once appointed as other parties, issuers will become the parties responsible for collecting VAT through the SPP-TDLN pursuant to the provisions under MoF Reg. 49/2026.

The regulation also stipulates that issuers must undergo a system development and stabilisation period before being appointed as other parties. The technical provisions governing these stages are set out in Article 4 of MoF Reg. 49/2026.

Bimo stated that the Directorate General of Taxes (DGT) will increase the number of issuers appointed as other parties responsible for collecting VAT. However, appointments will be made after taking into account the system readiness of each issuer as well as their compliance with the prescribed requirements.

"Naturally, the [number of] issuers will continue to grow in line with the system readiness of each issuer. This is also part of our collaboration with regulators, such as the Financial Services Authority (OJK) and Bank Indonesia," said Bimo. (rig)