PER-7/PJ/2025 Stipulates VAT Registration via Coretax

JAKARTA, DDTCNews - PER-7/PJ/2025 sets out in detail the procedure for applying for VAT registration of a taxable person (pengusaha kena pajak/PKP in Indonesian) through the taxpayer portal or the coretax administration system.

When applying for VAT registration through the coretax system, taxpayers are required to complete and sign the form electronically. The VAT registration application form is subsequently submitted to the Directorate General of Taxes (DGT) via the coretax system, accompanied by a map and photographs of the business premises.

"The electronic application for VAT registration through the taxpayer portal ... is conducted by completing, electronically signing and submitting the VAT registration form accompanied by a map and photographs of the business location," reads Article 52 paragraph (3) of PER-7/PJ/2025, as cited on Wednesday (11/6/2025).

PER-7/PJ/2025 states that entrepreneurs that supply taxable objects pursuant to the VAT Law, except for small-scale entrepreneurs whose threshold is determined by the minister of finance, are obliged to register their business to be registered as taxable persons.

Meanwhile, pursuant to MoF Reg. 164/2023, an application for VAT registration must be submitted by entrepreneurs whose turnover has exceeded the small-scale entrepreneur threshold of IDR4.8 billion.

Upon being registered as a taxable person, the entrepreneur will be able to collect, remit and file VAT on supplies of taxable goods (barang kena pajak/BKP in Indonesian) and/or taxable services (jasa kena pajak/JKP in Indonesian) they conduct.

With the introduction of the coretax system, the DGT now allows taxpayers to apply for VAT registration through the taxpayer portal or the coretax system. This has been provided for under MoF Reg. 81/2024.

Nonetheless, applications for VAT registration may continue to be submitted through other websites or applications integrated with the DGT's administration system and/or the DGT's contact centre.

In respect of an application for VAT registration submitted through the coretax system, where the application fulfils the requirements, an electronic receipt (bukti penerimaan elektronik/BPE in Indonesian) will be issued to the taxpayer. Conversely, if the application does not fulfil the requirements, no electronic receipt will be issued to the taxpayer and the taxpayer's application will not be further processed.

The electronic receipt or proof of letter receipt is equivalent to a certificate of the application for VAT registration. The electronic receipt or proof of letter receipt shall be issued no later than 1 business day after the application for VAT registration is submitted.

In respect of an application for VAT registration for which an electronic receipt or proof of letter receipt has been issued, the head of the tax office (kantor pelayanan pajak/KPP in Indonesian) will conduct an office examination to assess 3 matters. First, assessing the completeness of data and/or documents relating to the identity, establishment and/or business activities, including the main business sector classification.

Second, assessing the completeness of the required documents attached, namely a map and photographs of the business location as well as a statement letter concerning the actual business activities and business location and contract, agreement or similar documents. Third, assessing that the entrepreneur's access to preparing tax invoices has not been deactivated.

Based on the office examination, the head of the tax office will issue a decision either to approve the application by issuing a VAT registration certificate, where the application fulfils the requirements for VAT registration or to reject the application by issuing a rejection letter for VAT registration, where the application does not satisfy the requirements for VAT registration as a taxable person.

The head of the tax office shall issue this decision no later than 10 business days after the electronic receipt or proof of letter receipt is issued.

"If the head of the tax office does not issue a decision within the period ..., the application by the entrepreneur is deemed granted and the head of the tax office must issue the VAT registration letter no later than 1 business day after the date the period for the granting of the decision ends," reads Article 52 paragraph (6) of PER-7/PJ/2025.

Where an application for VAT registration is submitted through the coretax system, the VAT registration certificate or rejection letter for VAT registration from the head of the tax office will also be delivered to the taxpayer through the coretax system. (dik)