Examples of Start of MoF Reg. 164/2023 Art. 18 p. (1) PKP Obligations

JAKARTA, DDTCNews – The Minister of Finance Regulation (MoF Reg.) 164/2023 contains several rules concerning the obligation to collect remit and file VAT or VAT and sales tax on luxury goods (STLGs) payable by taxable persons for VAT Purposes (pengusaha kena pajak, hereinafter referred to as PKP).

Director of Tax Dissemination, Services and Public Relations of the DGT Dwi Astuti said the tax authorities allow taxpayers to choose when the obligation to collect, remit and file VAT commences as stipulated under MoF Reg. 164/2023.

“This MoF Reg. also stipulates several time schemes to start the obligation as PKPs, thereby, taxpayers may choose when the obligation to collect, remit and file VAT starts,” she said, Friday (12/1/2024).

Article 18 paragraph (1) of MoF Reg. 164/2023 states that entrepreneurs that have been registered as PKPs based on application must collect, remit and file VAT or VAT and STLGs payable.

The exercise of the obligation to collect, remit and file VAT may commence in the first taxable period of the following accounting year. The said taxable period refers to the taxable period of the registration as PKPs.

Next, there are different provisions for PKPs registered after the deadline or registered ex officio.

As is known, if the entrepreneurs do not exercise the obligation to report their business to be registered as PKPs, the head of the KPP or KP2KP may register the entrepreneurs as PKPs ex officio.

Referring to Article 19 paragraph (1) of MoF Reg. 164/2023, PKPs registered ex officio must collect, remit and file VAT or VAT and STLGs payable starting the taxable period of the registration as PKP.

MoF Reg. 164/2023 also stipulates the exercise of rights and the fulfilment of obligations of the PKPs for supplies of taxable goods and/or taxable services which should be subject to the collection of VAT or VAT and STLGs starting the first taxable period of the following accounting year until before the entrepreneurs are registered as PKPs.

If the PKPs do not fulfil the provisions, the director general of taxes may issue a notice of tax assessment and/or notice of tax collection pursuant to statutory tax provisions.

On the other hand, Article 20 paragraph (1) of MoF Reg. 164/2023 stipulates that PKPs that report their business may also collect, remit and file VAT or VAT and STLGs before the first taxable period of the following accounting year. 

If they wish to do so, entrepreneurs may report their business to be registered as PKPs by applying for the registration of PKPs and submitting the notification of the taxable period to start collecting, remitting and filing VAT or VAT and STLGs payable in the application for the registration of the said PKPs.

The application and notification shall be submitted before the deadline referred to in Article 17 paragraph (3) of MoF Reg. 164/2023, i.e. no later than the end of the accounting year the amount of gross turnover and/or gross revenues exceeds the threshold

Based on the application, the head of the KPP or the head of the KP2KP registers the entrepreneurs as PKPs.

The application for the registration of PKPs and the registration of PKPs shall be implemented pursuant to the provisions stipulated under the MoF Reg. concerning procedures for the registration of taxpayers and the deregistration of TINs as well as the registration and deregistration of PKPs.

Pursuant to Article 20 paragraph (4) of MoF Reg. 164/2023, PKPs must collect, remit and file VAT or VAT and STLGs payable starting the desired taxable period listed in the notification. The said taxable refers to the taxable period of the registration as PKPs. (rig)