Government Expands Digital VAT Collection Starting November 9, DJP Affirms It Is Not a New Tax
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The Indonesian government will expand the collection of Value Added Tax (PPN) on digital transactions starting November 9, 2026. The policy was announced by the Directorate General of Taxes (DJP), part of the Ministry of Finance that handles taxation in Indonesia.
Nevertheless, DJP emphasizes that this policy is not a new type of tax. The rule merely extends the existing VAT collection to cover more services and transactions conducted digitally. Accordingly, the public need not worry that they will have to pay a completely different type of tax.
DJP also provides important clarification for people who frequently transfer money. DJP states that fund transfers are not automatically subject to VAT. In other words, sending money between bank accounts does not necessarily become a taxable object. Tax only applies to certain types of transactions that are regulated under the provisions.
Overall, this expansion is part of the government's efforts to adapt the tax system to the developments of the digital economy. The public and business operators are advised to follow official information from DJP so they fully understand the provisions before the rule takes effect.
Sources: MUC Consulting
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