30 Banks and Fintechs to Collect VAT on Foreign Digital Transaction

The Directorate General of Taxes plans to appoint 30 banks and fintech companies as VAT collectors for foreign digital transactions through the SPP-TDLN system by November. Six institutions, including five state-owned banks and LinkAja, have joined so far, while others are preparing their systems. Authorities recorded around 5.5 million transactions with a potential value of Rp10 trillion between late September and early October 2026. The scheme does not introduce a new tax or alter VAT rates, but aims to improve collection of VAT on overseas digital goods and services while preventing double taxation.