VAT Collection Flow via SPP-TDLN: Consumer to State Treasury

JAKARTA, DDTCNews - The Government, through MoF Reg. 49/2026, regulates VAT collection via the tax collection system for cross-border digital transactions (sistem pemungutan pajak atas transaksi digital luar negeri/SPP-TDLN in Indonesian) scheme for the utilisation of digital goods and/or digital services from abroad in Indonesia.

The Directorate General of Taxes (DGT) has stated that there are several stages in implementing VAT collection through the system or technology known as SPP-TDLN.

"From consumers transacting and issuers submitting transaction data, through to the identification and VAT collection process; everything fis interconnected," wrote the DGT on its official social media, as cited on Monday (9/11/2026).

In essence, VAT collection via SPP-TDLN involves a number of parties. Under MoF Reg. 49/2026, the parties involved include consumers conducting the transactions to consume digital goods or digital services from overseas.

There is also the SPP-TDLN operator. At present, the Government has appointed PT Jalin Pembayaran Nusantara as the SPP-TDLN operator.

Next, there is the issuer, being the party appointed by the DGT as the VAT collection agent from consumers. The VAT collected by the issuer will be remitted to the SPP-TDLN operator, which will then remit it to the state treasury.

An issuer may be a bank or a non-bank institution, such as a financial technology (fintech) company or a payment gateway that provides services to facilitate payment for cross-border digital transactions conducted by consumers.

The DGT has further introduced the stages of VAT collection through the SPP-TDLN mechanism. First, the consumer conducts a transaction facilitated by the issuer.

This implies that the consumer in Indonesia purchases or uses digital goods or digital services from abroad, for example, subscribing to digital services, such as cloud or artificial intelligence (AI) platforms or purchasing online games.

Second, the issuer submits transaction data through the system governed under SPP-TDLN.

Third, SPP-TDLN identifies the transaction. The data submitted by the issuer is used to determine whether the transaction involving the utilisation of digital products and digital services from abroad constitutes a VAT object.

Fourth, VAT collection. Once a transaction has been identified as a cross-border transaction subject to VAT, the SPP-TDLN operator will provide confirmation to the issuer to proceed with VAT collection.

Conversely, if a transaction is identified as a domestic transaction, which falls outside the SPP-TDLN scheme, the issuer will proceed with the transaction without collecting VAT through that mechanism.

Fifth, the issuer collects VAT and is required to produce a VAT collection document. That document constitutes a specific document equivalent to a tax invoice.

A VAT collection document may take the form of a bill statement and/or a similar document, provided it is accompanied by 6 items of data as required under Article 10 paragraph (2) of MoF Reg. 49/2026. See: Collecting VAT via SPP-TDLN: Other Parties Must Issue These Documents

The VAT amount stated in the specific document constitutes creditable input VAT, provided 2 conditions are satisfied, namely:

• the email address or telephone number is registered in the DGT's administration; and
• the provisions on input VAT crediting are fulfilled pursuant to statutory provisions in the field of taxation. (dik)