Indonesia’s digital tax collection system aims to collect VAT on qualifying overseas digital purchases.

It does not impose new charges on routine bank transfers or e-wallet transactions.

Finance Minister Suahasil Nazara clarified the policy following concerns over possible new VAT charges on money transfers, according to ANTARA.

Existing rules under Ministry of Finance Regulation No. 69 of 2022 allow VAT to be charged on certain payment service fees, but not on the amount transferred.

The clarification follows remarks by Kadin adviser Hashim Djojohadikusumo that raised questions about possible VAT charges on bank transfers and digital wallets from 9 November.

Suahasil explained that the policy concerns the Tax Collection System for Foreign Digital Transactions (SPP-TDLN), governed by Ministry of Finance Regulation No. 49 of 2026.

The system does not introduce a new tax or change existing VAT rates.

It instead aims to improve the collection of VAT on qualifying digital goods and services purchased from overseas providers.

The system began operating on 25 September 2026.

Featured image: Edited by Fintech News Indonesia, based on images from the Minister of Finance of the Republic of Indonesia via Instagram and ImageFlow via Magnific.