A tax invoice is proof of tax levy that must be made by a taxable entrepreneur (PKP) who delivers taxable goods (BKP) or taxable services (JKP). The obligation to make a tax invoice is stated in Article 13 of the VAT Law.
PKP must make a tax invoice by the stipulated provisions. Details of the provisions regarding how to make a tax invoice are contained in the Director-General of Taxes No. PER-24/PJ/2012 stdtd Perdirjen Tax No. PER-17/PJ/2014.
Article 6 paragraph (1) of the regulation states that PKP must make a tax invoice using the tax invoice code and serial number (NSFP). The code and NSFP consist of 16 digits with the 1st and 2nd digit format being the tax invoice code.
Next, the 3rd digit is the tax invoice status (normal/replacement). Meanwhile, digits 4 to 16 represent NSFP. The transaction code in the first two digits has been determined by the tax authority.
The transaction code can also be used to identify every transaction made by PKP. The reason is, that each transaction code has been assigned its purpose. So, what exactly are the terms and meanings of each transaction code in the tax invoice?
The details of the meaning, as well as the procedure for using the transaction code on the tax invoice, are contained in Attachment III of the Director-General of Taxes No. PER-24/PJ/2012. The following is a detailed description of the meaning and use of each transaction code in a tax invoice.
This code is used for the submission of BKP and/or JKP for which VAT is payable and the VAT will be collected by the PKP of the seller who submits the BKP and/or JKP.
This code is used if the submission is made to BKP and/or JKP with a general nature. This means that this code is used if the transaction is not a delivery that uses another value DPP, gets facilities that are not collected, released, borne by the government (DTP), and sale of assets (not the submission of code 04-09).
Example: PT Amarta Mebel, which has been confirmed as a PKP, handed over a number of its furniture to PT Utama Karya. Thus, Amarta Furniture needs to use code 01 in the tax invoice in the transaction.
This code is used for the submission of BKP and/or JKP to the government treasurer’s VAT collector whose VAT is collected by the government treasurer’s VAT collector.
Example: PT Bondowoso is a PKP for a building contractor who has a contract to build a building belonging to the Ministry of Finance. When Bondowoso collects payment from the treasurer of the Ministry of Finance, Bondowoso needs to use code 02.
This code is used for the submission of BKP and/or JKP to other VAT collectors (other than government treasurers) whose VAT is collected by other VAT collectors (other than government treasurers).
Other VAT collectors are referred to include oil and gas concession contractors, contractors or holders of power/license holders for geothermal resources exploitation, and BUMN.
In addition, other taxpayers are appointed as VAT collectors, including companies subject to mining contracts of work, which are lexed specialists appointed as VAT collectors.
Example: PT DR Computer handed over several laptops to PT Maxi Oil – a contract contractor for oil exploitation. As a result, DR Computer as a PKP partner needs to issue a tax invoice with code 03.
This code is used for the submission of BKP and/or JKP using another value DPP whose VAT is collected by the PKP of the seller who submits the BKP and/or JKP. Examples of other value DPPs are contained in PMK 75/2010 stdtd PMK 121/2015.
Based on this regulation, other DPP values are used for personal use, gifts, delivery of tobacco products, delivery of package delivery services, delivery of travel agency services, and freight forwarding services.
Example: PT Hatori delivers goods delivery services belonging to PT Taro. Thus, Hatori needs to create a tax invoice with code 04 for the transaction.
This code is not used.
This code is used for other submissions for which VAT is levied by PKP sellers who submit BKP and/or JKP, and submissions to individuals holding foreign passports (foreign tourists) as referred to in Article 16E of the VAT Law.
This code is used for the submission of BKP and/or JKP other than the type of submission in codes 01 to code 04 and the submission of BKP to individuals holding foreign passports (foreign tourists), including:
- Submissions that use rates other than 10%;
- Delivery of tobacco products made domestically by a tobacco product factory entrepreneur or tobacco products made overseas by a tobacco product importer concerning KMK No. 62/KMK.03/2002; or
- Submission of BKP to individual foreign passport holders (foreign tourists) by the designated Retail Store PKP, related to the issuance of special tax invoices.
Example: PT Cindra is a manufacturing company that focuses on producing souvenirs and handing over goods to foreign tourists. Thus, Cindra needs to issue a tax invoice with code 06.
This code is used for the submission of BKP and/or JKP which receive the facility of uncollected VAT or DTP based on the applicable special regulations. The special rules include bonded areas, bonded stockpiles, duty-free shops, free trade areas, and free ports.
Example: PT Jayabaya handed over several machines to PT Garmen Kita as a garment company in the bonded zone. The submission will receive a VAT facility that is not collected. Thus, Jayabaya created a tax invoice with code 07.
This code is used for the submission of BKP and/or JKP which has the facility of being exempted from the imposition of VAT based on the applicable special regulations. The special rules include, among other things, VAT-exempt imports and VAT exemptions for representatives of foreign countries.
Example: PT Omega handed over fish seeds. Based on PMK 155/2001 stdtd PMK 31/2008 and PMK 268/2015, the seeds get a free facility.
This code is used for the submission of Article 16D Assets whose VAT is collected by the PKP Seller who submits the BKP.
Example: PT Candra is a clothing industry that sells motorbikes that were previously used for operations. Thus, Candra needs to issue a tax invoice using transaction code 09.