PKP (VAT-Registered Entrepreneur)
A PKP is a VAT-registered entrepreneur required to collect, remit, and report VAT. Governed by Article 1 paragraph 15 of the VAT Law. Registration is mandatory when annual turnover exceeds Rp 4.8 billion (PMK No. 197/PMK.03/2013); voluntary registration is available below this threshold. Once registered, a PKP must issue a Tax Invoice for every BKP/JKP supply, remit VAT by end of the following month, and file the monthly VAT return by the same deadline.
This article is for education, not tax advice.
Example
An online store reaching Rp 5 billion turnover in 2024 must register as PKP and issue e-Faktur for every sale from the following month.
Source: Article 1(15) VAT Law; PMK No. 197/PMK.03/2013
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