Foreign-owned companies in Indonesia that are registered as taxable entrepreneurs (Pengusaha Kena Pajak, or PKP) must submit monthly value-added tax (VAT) returns through the Directorate General of Taxes’ (DGT) Coretax system, including for periods without taxable transactions.
What Must a Foreign-Owned Company Prepare Before Filing Its Monthly VAT Return?
Preparing a monthly VAT return (SPT Masa PPN) requires the following records:
- Sales tax invoices: Electronic tax invoices (faktur pajak) issued for taxable sales.
- Purchase tax invoices: Valid invoices supporting eligible input VAT credits.
- Import documentation: Customs declarations and evidence of import VAT payments, where applicable.
- Accounting records: Sales and purchase ledgers used to verify reported transactions.
- Previous VAT returns: Excess input VAT carried forward from earlier periods.
PT PMAs importing goods must account for import VAT, while services received from overseas suppliers may give rise to separate VAT payment and reporting obligations when utilized in Indonesia.
How Does a Foreign-Owned Company File Its Monthly VAT Return Through Coretax?
The company deducts eligible input VAT paid on business purchases from output VAT charged on taxable sales.
For example, a PT PMA reports:
- Output VAT: IDR 120 million (USD 7,500).
- Eligible input VAT: IDR 80 million (USD 5,000).
- VAT payable: IDR 40 million (USD 2,500).
Where input VAT exceeds output VAT, the excess is generally carried forward to subsequent periods. Refunds may also be available under the applicable VAT refund rules.
Access Coretax and select the reporting period
An authorized representative accesses the company’s taxpayer account and prepares the return for the relevant reporting period.
Review the reported transactions
The company verifies the electronic tax invoice data against its accounting records. Incorrect invoices may require correction before filing.
Settle any VAT payable
Where the return shows VAT payable, Coretax provides two payment options:
- Billing code: Coretax generates a billing code for the outstanding amount. The return remains under SPT Menunggu Pembayaran (Awaiting Payment) until payment is completed, at which point it is considered filed.
- Tax deposit balance: The company uses its existing Coretax deposit balance. The return is considered filed when the Bayar dan Lapor (Pay and File) process is completed successfully.
The two payment methods cannot be combined for a single return through this process.
Submit the return
Returns showing no VAT payable or excess input VAT can proceed to electronic submission. Once successfully submitted, the return is recorded as filed.
The company should retain the electronic filing receipt (Bukti Penerimaan Elektronik, or BPE).
When Must a Foreign-Owned Company Submit Its Monthly VAT Return?
Monthly VAT returns must generally be submitted by the last day of the month following the reporting period. Outstanding VAT must also be settled by the applicable payment deadline, generally the end of the following month.
Late filing generally results in an administrative fine of IDR 500,000 (USD 31.25) per return. Late payments may attract administrative interest.
How Can a Foreign-Owned Company Correct an Incorrect VAT Return?
Companies can correct previously submitted VAT returns if they discover missing sales, incorrect transaction amounts, or mistakes in their input VAT claims. If the error involves a tax invoice, the invoice may also need to be corrected.
MAP Resources Indonesia assists foreign-owned companies with VAT calculations and Coretax reporting. Email info@mapresourcesindonesia.com for assistance.
Since October 2026, Coretax has used a system where the corrected return replaces the previous figures. The system considers VAT already paid, refunds received, and unused VAT credits carried forward from earlier months.
For example, if a company previously claimed too much input VAT, correcting the return may reduce the VAT credits available for future months.
Companies can generally make corrections before the tax authorities begin an audit or certain formal investigations covering the relevant period. If the correction results in additional VAT payable, the company must pay the difference and may also incur interest charges.
Manage Monthly VAT Reporting with MAP Resources Indonesia
MAP Resources Indonesia assists foreign-owned companies with monthly VAT calculations, Coretax reporting, and amendments to previously submitted returns. For assistance, email info@mapresourcesindonesia.com.
