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Tax Glossary
e-Faktur (Electronic Tax Invoice)
e-Faktur is an electronic Tax Invoice created through the DJP's e-Faktur application. Governed by PER-03/PJ/2022. e-Faktur rollout began in 2014 and is now mandatory for all PKPs in Indonesia. Each e-Faktur contains a QR code and unique reference number for easy verification. Failure to issue a compliant e-Faktur can result in a penalty of 2% of the Tax Base (DPP) under Article 14 paragraph (4) of UU KUP. Submission to the DJP is automated within the e-Faktur system.
Tax Glossary
Monthly VAT Return (SPT Masa PPN)
The Monthly VAT Return (SPT Masa PPN) is the monthly report that every PKP must submit to DJP, summarizing Output Tax, creditable Input Tax, and the net VAT payable or overpaid. Governed by Article 15A of the VAT Law and PER-29/PJ/2015. The filing deadline is the end of the following month after the tax period. Since April 2022, filing is done through the e-Faktur application, which auto-generates return data from uploaded invoices.
Tax Glossary
Tax Administrative Sanctions
Tax Administrative Sanctions are penalties imposed on taxpayers who violate tax administrative provisions, consisting of fines, interest, and surcharges. Governed by Articles 7-15 of UU KUP. Types: Fines (e.g., Rp 100,000 for late individual return; Rp 1,000,000 for corporate; 2% of DPP for non-compliant e-Faktur); Interest (2% per month on late tax payments, max 24 months per Article 9 paragraph 2b UU KUP); Surcharges (50% or 100% of underpaid tax depending on circumstances). Criminal sanctions are separate and regulated differently.
Tax Glossary
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.
Tax Glossary
Tax Invoice (Faktur Pajak)
A Tax Invoice (Faktur Pajak) is proof of VAT collection issued by a PKP when supplying taxable goods (BKP) or services (JKP). Governed by Article 13 of the VAT Law and PER-03/PJ/2022. The invoice must be issued at the point of supply, or by the end of the delivery month if payment is received before supply. A late or non-compliant invoice is invalid and cannot be credited as Input Tax. Since 2014, Tax Invoices must be issued electronically via the DJP's e-Faktur application.
Tax Glossary
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.
Tax Glossary
Taxable Services (JKP)
Taxable Services (JKP) are services subject to VAT under the PPN Law. Governed by Article 1 paragraph 6 and Article 4A of the VAT Law. Like BKP, all services are JKP by default unless explicitly exempt. Exempt services include: medical healthcare, social services, postage stamp mail delivery by PT Pos Indonesia, financial services, insurance, religious services, education, and public transportation. PKPs supplying JKP must issue a Tax Invoice; VAT is due at the point of service delivery.