Reports that a "digital tax" would take effect on 9 November 2026 and impose VAT on bank transfers have circulated widely over the past week. The Directorate General of Taxes (DGT) has stressed that what is being implemented is the Foreign Digital Transaction Tax Collection System (SPP-TDLN), which is not a new tax and does not change the VAT rate. The 9 November date originated from a statement by Kadin Indonesia Advisory Board Chairman Hashim Djojohadikusumo at the Kadin National Leadership Meeting in Jakarta on 29 October 2026.
Key points
- SPP-TDLN is governed by Minister of Finance Regulation (PMK) 49/2026, promulgated on 20 July 2026. It targets only VAT on the use of digital goods (intangible taxable goods) and digital services from abroad within Indonesia.
- VAT is collected at 11/111 of the VAT-inclusive price or payment, once the SPP-TDLN operator confirms the transaction as subject to VAT.
- On 25 September 2026, the DGT appointed six issuers as collectors: BRI, Bank Mandiri, BNI, BTN, BSI and LinkAja. More will be added once other prospective issuers complete their stabilisation period.
Transfers and remittances are not automatically subject to VAT
DGT Director of Counselling, Services and Public Relations Inge Diana Rismawanti stated that fund transfers and remittances are not automatically VAT objects, and that the system is not intended to collect VAT on personal transfers. Director General of Taxes Bimo Wijayanto also emphasised that there will be no double collection: transactions already subject to VAT collected by e-commerce (PMSE) operators, which according to the DGT number around 260 digital service providers, are excluded from SPP-TDLN.
What to watch
- Businesses paying for foreign digital services, such as software subscriptions or online advertising, should review the collection receipts issued by banks or issuers as documents equivalent to tax invoices.
- Ensure there is no double collection between the PMSE scheme and SPP-TDLN; PMK 49/2026 also provides for correction and refund of VAT that should not have been collected.
- Refer to official DGT channels for additional collector appointments rather than information circulating on social media.
Want to make sure the VAT treatment of your company's foreign subscriptions and digital services is correct? Contact Hanna Consulting for a consultation.
Sources: DDTCNews · detikFinance · DDTCNews (Dirjen Pajak) · DDTCNews (PMK 49/2026)
