PKP Registration
PKP Registration (Pengukuhan PKP) is the formal process by which the KPP registers an entrepreneur as a VAT-registered taxpayer, either upon application or ex officio. Governed by Article 2 paragraph (2) of the VAT Law and PER-02/PJ/2018. Entrepreneurs whose turnover exceeds Rp 4.8 billion in a fiscal year must apply for PKP status by the end of the following month. Upon registration, the entrepreneur receives a PKP Certificate and must issue e-Faktur from the following month. Late registration may result in sanctions.
This article is for education, not tax advice.
Example
CV Berkah reached Rp 5 billion turnover by end of September. They must apply for PKP registration at their KPP by 31 October. If late, the DJP may register them ex officio and impose sanctions.
Source: Article 2 paragraph (2) UU PPN; PER-02/PJ/2018