VAT Registration in Indonesia: Threshold, Deadline and Coretax
VAT registration in Indonesia: who must register, the IDR 4.8 billion threshold, the year-end deadline, and how the Coretax application works.
- UU No. 8 Tahun 1983 on VAT (the VAT Law), as amended by UU No. 42 Tahun 2009 (in force 1 April 2010) — Article 3A, the duty to register and voluntary registration
- UU No. 7 Tahun 2021 on harmonising tax regulations — Article 9(2) of the VAT Law as amended, crediting input VAT
- PMK No. 68/PMK.03/2010 as amended by PMK No. 197/PMK.03/2013 (in force 1 January 2014) — Article 1, the IDR 4.8 billion threshold; Article 7, revocation on application. Articles 4 and 5 revoked by PMK 164/2023
- PMK No. 164 Tahun 2023 — set and in force 29 December 2023. Articles 17–21, the registration deadline and when VAT starts; Article 24, revoking the earlier deadline
- PMK No. 81 Tahun 2024 — in force 1 January 2025. Articles 60, 67–68, 94(3)(e), 100, 171(13) and (17), and 173(1)
- PER-7/PJ/2025 on tax registration and account administration — set and in force 21 May 2025. Articles 51, 52, 54 and 56
- PER-11/PJ/2025 on returns, e-Faktur and withholding slips — in force 22 May 2025. Articles 40–42
- PMK No. 131 Tahun 2024, Article 3: VAT at 12% on a base of 11/12 of the price, from the start of 2025
VAT registration in Indonesia, registering for value added tax, becomes compulsory once a business’s taxable sales pass IDR 4.8 billion in a book year (PMK 68/PMK.03/2010, Article 1, as amended by PMK 197/PMK.03/2013). A registered business is a Pengusaha Kena Pajak (PKP), a taxable entrepreneur: it charges VAT on what it sells and reports it every month.
The threshold and the deadline
The rule that matters most is the deadline. Sales are counted cumulatively through the year, and once they pass the threshold in any month, the business must apply by the end of that book year (PMK 164/2023, Article 17(1) and (3)). Registered on time, it starts charging VAT from the first tax period of the following book year (Article 18(1)).
Guidance that allows only until the end of the following month describes an older rule. It was revoked on 29 December 2023 (PMK 164/2023, Article 24).
If a business passes the threshold and does not apply, the tax office can register it, and the business still owes the VAT it should have charged from the start of the next book year (PMK 164/2023, Articles 17(7) and 19). Applying before the year closes avoids both.
Registering before the threshold
Below IDR 4.8 billion, registration is a choice. A small business may register voluntarily (VAT Law, Article 3A(1a); PMK 81/2024, Article 60(3)). A business that intends to make taxable sales from the outset may register before it has traded at all (PMK 81/2024, Article 60(4)), which is the route open to a newly formed company.
A voluntary registrant names the tax period from which it wants to start charging VAT (PMK 164/2023, Article 21). From then on it carries the same obligations as a business that had to register (VAT Law, Article 3A(2)).
How VAT registration in Indonesia works in Coretax
Coretax is the tax office’s online system. The application is signed electronically from the company’s Coretax account (PER-7/PJ/2025, Article 52(3)), so the account and the person who acts for the company have to be in place first. That setup is covered in the guide to Coretax for companies.
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Apply in Coretax
A form with a map and photos of the business location (PER-7/PJ/2025, Article 52(1) and (3)). The tax office checks company and management details against records it already holds (Article 54(4)).
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The tax office reviews it
The tax office reviews the application, the location map and the photos at its own desk (Article 54(3)).
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A decision
The tax office decides within 10 working days of receiving the application. If no decision comes in that time, the application is treated as approved (Article 54(5)–(6)).
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Invoice access
The registration letter arrives in the Coretax account, and access to create tax invoices starts on the date VAT obligations begin (Article 54(7) and (9)).
MAM advises its clients on when to register and prepares and submits the application, with the map and photos of the location.
After registration, the tax office checks that the business location and activity match what was declared. The regulation provides for this check for every newly registered PKP, within 30 days of the PKP date (PER-7/PJ/2025, Article 56(2)–(4)), so it is routine rather than a sign of a problem.
A company whose main business is a service that can be run from a virtual office may register there, on stated conditions that include a contract of at least one year (PER-7/PJ/2025, Article 51(5)).
What changes once a company is registered
| Not registered | Registered (PKP) | |
|---|---|---|
| VAT on sales | Not charged | 12% on a base of 11/12 of the price (PMK 131/2024, Article 3) |
| Tax invoices | Not issued | An e-Faktur (electronic tax invoice) for each sale, made in Coretax or an appointed provider's application (PER-11/PJ/2025, Articles 40–42) |
| VAT paid on purchases | Not credited | Credited against the VAT charged on sales in the same period (VAT Law, Article 9(2)) |
| Monthly VAT return | None | Paid, then filed, by the end of the following month, even with nothing to report (PMK 81/2024, Articles 94(3)(e), 171(13) and (17)) |
When that month-end date falls on a weekend or public holiday, it moves to the next working day (PMK 81/2024, Articles 100 and 173(1)). The date is on the Indonesia compliance calendar, and the regulation itself is published by the Audit Board’s legal database.
Registration is not permanent. A PKP whose sales in a book year are no more than IDR 4.8 billion may apply to have it revoked (PMK 68/PMK.03/2010, Article 7, as amended; PMK 81/2024, Articles 67–68).
What this means for you
If your company’s sales are heading towards IDR 4.8 billion, the date to plan around is the end of that book year, not the month the figure is passed. If it will make taxable sales from the start, it can register before it trades.
VAT registration in Indonesia is a short online step. What follows it is the lasting part: a tax invoice for every sale and a return every month, nil months included. MAM takes on that VAT compliance as its own engagement, separate from the monthly corporate tax filings. To see what the rate means for a price, use the VAT calculator.