A variation from the standard mechanism, however, is in force for deliveries of taxable goods and services to VAT Collectors. The VAT Collectors are currently the State Treasury, State Owned Enterprises (Badan Usaha Milik Negara/BUMN) and some of their subsidiaries, PSC

(Production Sharing Contract) companies in the oil and
gas sector, and mineral mining companies holding certain Special Mining Business License. As the name implies, a VAT Collector is required to collect the VAT due from a taxable enterprise (vendor) on the delivery of taxable goods or services and to remit the VAT payment directly to the government, rather than to the vendor or the service provider. A company engaged in deliveries of taxable goods or services mainly to a VAT Collector may accordingly be in an overpaid VAT position (see pages 54-55 concerning VAT refunds).