VAT registration as a taxable entrepreneur (PKP): the IDR 4.8 billion test, voluntary registration and verification

We test your turnover against the IDR 4.8 billion limit, decide if voluntary registration helps, file the PKP application in Coretax, prepare for the tax office site check, and switch on e-Faktur so you can issue invoices from the start date.

IDR 2.500.000One time

For: Businesses whose taxable turnover passed IDR 4.8 billion in a book year, and smaller businesses that choose to register because their buyers need tax invoices.

What we need from you

Monthly sales of taxable goods and services this year
IDR 4.8 billion test
Lease or ownership proof for the business place
Tax office site check
Photos of the business place
Verification evidence
Company Coretax access and PIC
Application is filed in Coretax
Customer types: businesses or consumers
Voluntary registration case

What we discuss

Has your turnover passed IDR 4.8 billion this year?
Registration is then compulsory
Do your buyers need tax invoices to claim input VAT?
A reason to register early
Do you sell exempt or non taxable items?
Only taxable turnover counts
Are you using the 0.5 percent final income tax?
VAT is separate; you can be both

What we file

Turnover test
Cumulative taxable sales reach IDR 4,900,000,000 in October: register by end of November
PKP application
Site verification by tax office
Enable e-Faktur roles

What you get

PKP confirmation letter (SPPKP)
Invoice template with VAT lines
VAT calendar

The law

Art 3A, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: A business making taxable supplies must report to be confirmed as a taxable entrepreneur (PKP), except small entrepreneurs who may opt in Source
PMK 197/PMK.03/2013 on small entrepreneur limit: A small entrepreneur for VAT is one with taxable turnover up to IDR 4.8 billion in a book year Source
Art 7, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: VAT rate is 12 percent from 1 January 2025; exports are zero rated Source
PMK 81/2024 on tax provisions for implementing the Core Tax Administration System (Coretax): In force 1 January 2025; Coretax registration, returns, payment due dates aligned to the 15th of the following month, prepopulated returns and deposit balance Source

Questions people ask

Online payment in IDR is not open yet. Send us a message and an adviser for Indonesia confirms the scope and the fee before any work starts.