TaxSavvyID

Late tax invoice fine

Kami telat buat faktur bulan lalu. Ada denda?

The situation

A PKP that does not issue a tax invoice on time is fined 1 percent of the tax base under KUP Art 14(4).

The law

  • Art 13, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: A PKP must issue a tax invoice (faktur pajak) for every taxable supply, in electronic form
  • Art 14, Law 6/1983 on General Provisions and Tax Procedures (KUP Law), as last amended by Law 6/2023: The DJP issues a tax collection letter (STP) for fines and interest; a PKP that fails to issue or issues a late tax invoice is fined 1 percent of the tax base

What it means for you

Tax invoices must be made when the supply or payment happens. Late invoices also hurt buyers, who may lose input credit. Example: base IDR 50 million issued late gives a fine of IDR 500,000.

What to do

  1. Issue the missing invoices now.
  2. Report them in the right period.
  3. Expect an STP for the fine.
  4. Fix your invoicing process.

Buyers may refuse to pay VAT on late invoices.

We can do this for youMonthly VAT return and e-Faktur in Coretax: output and input VAT, the 11/12 base and payment: IDR 2.900.000

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