Is there a free VAT/GST threshold for foreign digital sellers?

Yes — IDR 600,000,000 (engine approximation). Proposed in

Is a local tax representative mandatory?

Not stated as mandatory for foreign PMSE collectors on the English DJP digital-tax page as of 2026-10-29

DJP states 12% VAT on a deemed base of 11/12 of the payment (excluding VAT)

Compendium · Asia · Indonesia

Indonesia: PPN on digital services

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Not supported by the free-threshold API · Local term: PPN

Last verified: 2026-10-29

Foreign PMSE operators (merchants, service providers, platforms) that meet Indonesia traffic or sales thresholds are appointed as PMSE VAT Collectors by DJP: they collect VAT on intangible goods/services used in Indonesia via electronic transactions, remit monthly, and file SPT Masa PPN. Rate stated by DJP as 12% on a deemed base of 11/12 of the payment (effective ~11%). A parallel SPP-TDLN payment-intermediary collection mechanism started 25 Sep 2026 for some non-collector merchants

Not supported by the free-threshold API: why

Free-threshold row proposed in

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Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.

Threshold and rates (PPN)

Free threshold?: Yes — Free-threshold row proposed in
Amount / measure: IDR 600,000,000
Registration when sales into the jurisdiction reach IDR 600,000,000. calendar year approximates rolling 12-month tests where applicable
Window: Calendar year
Standard rate: 12.0%
DJP digital-tax page (2026): VAT rate for PMSE collection is 12%, applied to a deemed VAT base of 11/12 of the payment excluding VAT. (Engine still encodes 11.0 — see contradictions report.)
Who must register: Foreign merchants, foreign service providers and foreign digital platform providers engaged in PMSE that meet the appointment criteria (or notify voluntarily). Domestic platforms may also be appointed
Evidence of location: Not specified as a fixed multi-evidence checklist on the English DJP digital-tax page as of 2026-10-29. Place of use is Indonesia (customs territory). Keep billing address, IP/geolocation, payment-instrument country and Indonesian user/traffic counts used for the appointment thresholds
Invoicing: Issue proof of VAT collection (commercial invoice, billing document, order receipt or similar) that clearly states VAT has been collected. Foreign collectors remitting under PMSE continue that mechanism; SPP-TDLN may collect via designated payment intermediaries for other merchants
Filing: Monthly remittance no later than the end of the following month; file VAT Periodic Return (SPT Masa PPN — e-commerce form for foreign operators) by the same deadline via Taxpayer Portal / Coretax. Foreign operators may remit in IDR or USD
Effective: PMSE VAT from 1 July 2020 (UU Cipta Kerja / PMK framework). SPP-TDLN collection via payment intermediaries under PMK 49/2026 effective 25 September 2026 for merchants not already appointed as PMSE collectors
Authority: Direktorat Jenderal Pajak (DJP)

What Botchannels returns

Ruleset version: 2026-10-22.v1
Decision summary: Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
Product class: Digital service
Support status: Not supported by the free-threshold API — Free-threshold row proposed in

How to register

Self-register online?: Yes — Foreign PMSE VAT collectors register in DJP Coretax as “Foreign eCommerce VAT Collector (PMSE)”. A local representative may file using their NPWP/NIK but is not mandatory under English DJP digital-tax guidance
Resident representative / fiscal agent: Not mandatory for foreign PMSE collectors under English DJP digital-tax guidance as of 2026-10-29. A representative may submit using their 16-digit NPWP/NIK
Regime: Appointment / registration as PMSE VAT Collector (Pihak Lain PMSE Luar Negeri) via DJP Coretax; NPWP issued to foreign operators

Steps (in order)

Read DJP digital-tax overview — https://www.pajak.go.id/en/digitaltax
In Coretax choose New Registration → Foreign eCommerce VAT Collector (PMSE). Enter company name and country; verify email via OTP
Add PIC (responsible person), address, KLU / business classification, bookkeeping currency, annual income, and Indonesian traffic/visitor info
Upload PIC face photo and photo holding passport; submit declaration and application
After appointment/registration, collect and remit PPN PMSE on in-scope digital supplies per DJP rates and filing calendar

Documents

PIC passport photo (face) and photo holding passport — Required uploads in Coretax PMSE foreign registration flow (DJP Coretax manual)
Business particulars — Legal name, country, address, KLU, currency, income, Indonesia traffic — entered in the form
Representative NPWP/NIK (if representative files) — 16-digit NPWP/NIK of the person filing on behalf of the foreign collector

Official processing time: Not published as a single English SLA on pajak.go.id as of 2026-10-29; Coretax issues confirmation after validation
Official fees: No DJP registration fee stated for PMSE foreign collector registration in English digital-tax materials
Portal: https://www.pajak.go.id/en/digitaltax
Local bank account: Remit via DJP-prescribed PMSE payment channels after returns
Filing frequency: Monthly PMSE VAT collection reporting (confirm current Coretax period)
Payment currency: IDR
Input VAT recovery: PMSE collector regime is output collection-oriented; input VAT recovery for foreign collectors is generally not available — confirm with DJP
Portal language: Coretax Indonesian; English overview on pajak.go.id/en/digitaltax. Practitioner guides (e.g. DDTC) cover the foreign PMSE flow
Penalties: DJP administrative sanctions for late/non-collection — see Undang-Undang KUP / PMSE rules

Firms offering this service

Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging

DDTC — Coretax PMSE foreign registration guide — Indonesian tax research / advisory publisher guide
KPMG Indonesia — Member firm
Deloitte Indonesia — Member firm
Grant Thornton Indonesia — Member firm

Official sources

DJP — VAT on Digital Goods and Services via Electronic Transactions
DJP — Pendaftaran Pihak Lain PMSE Luar Negeri
DJP PENG-6/PJ/2026 — SPP-TDLN (25 Sep 2026)

Last verified: 2026-10-29.

FAQ

Is there a free VAT/GST threshold for foreign digital sellers?: Yes — IDR 600,000,000 (engine approximation). Proposed in
Is a local tax representative mandatory?: Not stated as mandatory for foreign PMSE collectors on the English DJP digital-tax page as of 2026-10-29
What rate applies?: DJP states 12% VAT on a deemed base of 11/12 of the payment (excluding VAT)