Ministry of Finance Prepares Technical Regulations for VAT Collection of Overseas Digital Transaction

The government is currently drafting technical regulations to implement Regulation of the President No. 68 of 2025 (“ Regulation 68/2025 ”) on the Tax Collection System for Overseas Digital Transactions (Sistem Pemungutan Pajak atas Transaksi Digital Luar Negeri– “ SPP-TDLN ”). This legal instrument will use a simplified value-added tax (“ VAT ”) collection model for digital transactions conducted through overseas platforms.

“The implementation of SPP-TDLN will be further regulated in Regulation of the Minister of Finance (“ PMK ”),” said Rosmauli, Director of Counseling, Services, and Public Relations at the Directorate General of Tax, Ministry of Finance, to Hukumonline.

The implementation of this policy will depend on the results of trial (sandboxing) which is currently conducted by the designated SPP-TDLN organizer, PT Jalin Pembayaran Nusantara. This state-owned enterprise subsidiary will also receive compensation in the form of service fees by taking into account the payments of VAT into the state treasury.

“Just wait, it should be issued soon,” she concluded.