VAT Transition Policies by DGT: A Guide for PT PMA Owners in Indonesia
When Indonesia raised their VAT rate from 11% to 12%, many PT PMA owners found themselves unsure how to apply the new rules to ongoing transactions 📑. The change didn’t just affect future invoices — it also created confusion for contracts already signed, services already delivered, and payments still in process. This transition period quickly became a challenge for businesses trying to stay compliant while avoiding unnecessary penalties or system errors.
And the confusion didn’t end there ⚠️. Many companies submitted VAT reports only to see mismatches in Coretax, especially if their invoices weren’t updated to reflect 12% VAT correctly. Without clear guidance from trusted tax authorities like the Directorate General of Taxes or the right updates from Indonesia’s official Fiscal Policy Agency, business owners were left to guess. This led to delays, rejected filings, and a lot of stressful troubleshooting.
Fortunately, DGT has now released official VAT transition policies that explain how to revise invoices, correct tax credits, and update e-Faktur for the 12% rate 🧩. These rules support PT PMA businesses in issuing lawful corrections and managing cross-period reporting. With the right steps, companies can complete the transition smoothly, protect their books, and stay on track with monthly tax deadlines.
Some foreign investors in Bali have already applied these steps with success 🔁. One company in Seminyak reissued invoices from late 2024 at the correct 2025 rate and avoided VAT penalties entirely. They did it by following the revised instructions, adjusting e-Faktur entries, and consulting with a tax consultant familiar with the new DGT policies. It was a reminder that staying informed helps protect your business during regulatory shifts.
Now is the perfect moment to update your VAT workflow, check which invoices need correcting, and make sure your e-Faktur and Coretax data are aligned 📲. Getting ahead of the changes is easier when you rely on trusted public sources like the Directorate General of Taxes and other official economical agencies that issue tax policies. The faster you adjust, the smoother your compliance experience will be this year.
Table of Contents
- Understanding VAT Transition Policies for PT PMA Owners 💼
- How to Handle Cross-Period Invoices After VAT Rate Change 📄
- Updating e-Faktur to Reflect Indonesia’s 12% VAT Correctly 💻
- Avoiding Penalties During the VAT Transition Period in 2025 ⚠️
- Best Practices to Adjust PT PMA Tax Reporting Under New VAT Rules ✅
- How Coretax Helps Track VAT Corrections During Transition 🔍
- New VAT Compliance Requirements for Foreign-Owned Companies 🌍
- Real Story: How a Seminyak PT PMA Adapted to the 12% VAT Shift 🌿
- FAQs About VAT Transition Policies and PT PMA Tax ❓
Understanding VAT Transition Policies for PT PMA Owners 💼
When Indonesia increased its VAT rate from 11% to 12% in 2025, the government didn’t just flip a switch. Instead, they issued VAT transition policies that explain how to handle old and new invoices during the transition. These policies aim to help PT PMA owners apply the correct rate during the crossover period.
For example, if you issued invoices in December 2024 but received payment in January 2025, the VAT rate might not be the same for every stage of the process. That’s where confusion begins 🤯. To solve this, PT PMA owners need to understand which VAT rate applies based on billing date, delivery date, or payment date — and how to correct it using e-Faktur.
Good news: the transition policies give clear rules to follow. If your business takes time to adjust, you can still stay compliant if you align with these rules. Learning these changes early ensures your tax reporting stays accurate and penalty-free.
Cross-period invoices happen when a contract or service starts before the VAT increase but is paid after. These invoices are tricky because they span both VAT rates.
To manage them correctly, PT PMA owners must adjust the VAT calculation and ensure their e-Faktur reflects the change. Some companies choose to issue a replacement invoice with the updated VAT rate, while others issue a credit note and re-invoice at the correct rate. Both methods are allowed — but must follow government rules.
One simple rule: if the tax invoice was issued before the VAT increase (even if unpaid), use the old rate. If the invoice is issued after the increase, use the 12% rate. Missing this step could cause tax mismatches later in Coretax. This is why cross-period invoices must be handled with care and documented properly ✅.
Updating e-Faktur is essential for PT PMA companies after the VAT rate transition. The latest version of e-Faktur allows users to choose the correct VAT rate for each invoice, whether it’s 11% or 12%. If you’re still using an old version, you might see errors when uploading invoices to DJP Online.
Before issuing new invoices, update your e-Faktur app and consider revising old invoices that still show 11% VAT. If your company deals with recurring billing — like subscriptions or rentals — you may need to update templates or systems to reflect the new rate.
Most PT PMA accountants rely daily on e-Faktur to ensure tax compliance, and updating it is a small but powerful step. If this process feels confusing, ask your tax consultant for help. Acting early prevents rejection notices and last-minute invoice fixes ⚙️.
A common question: will PT PMA companies get penalized for honest mistakes during the VAT transition? Yes — if the mistakes involve incorrect VAT rates, misreported invoices, or late corrections.
The government has strict rules on invoice issuance and filing deadlines. If you continue to use 11% VAT when the rate has shifted to 12%, the invoice could be considered non-compliant. That means no tax credit allowed — and possible fines in future audits 💸.
To stay safe, revisit invoices issued from December 2024 to early 2025. Check them for rate accuracy and correct them using e-Faktur if necessary. A quick audit now will save time and stress later. Remember: compliance is not just about reporting — it’s about keeping proper records too.
Want to avoid confusion in tax reporting this year? Here are some best practices PT PMA owners have found helpful:
🔹 Create a checklist to review invoices issued before, during, and after the VAT switch
🔹 Update accounting software and invoice templates with the new VAT rate
🔹 Train your finance team to recognize rate differences and transition policies
🔹 Monitor Coretax for any system mismatch alerts
🔹 Keep a separate log for corrected or re-issued invoices
Following these steps helps improve PT PMA tax compliance and keeps monthly submissions error-free. A small investment in training and software updates can prevent audit risks and penalties later.
Coretax is the backbone system for tax reporting in Indonesia. When you submit invoices, the system checks whether VAT data matches e-Faktur entries. If they don’t match, Coretax shows a discrepancy alert.
During the VAT transition, many PT PMA companies saw mismatches between 11% and 12% VAT invoices. This happened because e-Faktur wasn’t yet updated, or old invoices were uploaded without adjustments.
Coretax helps identify those issues early — but only if you upload invoices consistently. It’s also useful for reconciling VAT paid and VAT claimed across periods. So if your business uses Coretax, make it part of your monthly tax audit process 📝.
Foreign-owned companies in Indonesia, or PT PMA, must follow the same VAT transition rules as local companies — but with more attention to cross-border billing. For example, service export transactions may have different VAT rules, especially if issued before the rate increase.
Foreign investors must also check whether imported services are subject to the updated VAT rate. That includes software licenses, consulting services, or foreign subscription platforms.
Keeping up with these new rules helps foreign business owners stay confident and compliant. If VAT rules feel unclear, it’s smart to ask a tax advisor or check updates issued by Indonesia’s tax authorities 📚.
Meet Daniel Fischer, a German investor who operates a PT PMA in Seminyak focused on hospitality consulting. In December 2024, he issued three invoices for training services using the old 11% VAT rate. But the payments came in January — after the rate increase.
Daniel’s finance team flagged the issue early. They re-issued the invoices using 12% VAT, adjusted the e-Faktur entries, and attached the corrected versions to Coretax. That move helped them avoid penalties, get input tax credit approval, and reconcile VAT accurately in Q1 2025.
He shared that the hardest part wasn’t updating invoices — it was knowing the rule. Once his accountant read the VAT transition policy, the rest was just process. Daniel now holds a monthly VAT review session to catch errors early. His advice? “Don’t wait for a tax audit to clean things up — review as you go. It saves stress and money in the long run.”
Yes, if payment was received after January 1, 2025.
No, you must update to the latest version to support 12% VAT.
Use corrected tax invoices and match them in Coretax before filing.
Service exports may still be 0%, but admin fees may include 12% VAT.
Yes, if properly reported and supported with valid tax documents.
Need help applying Indonesia’s 12% VAT transition rules for PT PMA? Chat with us on WhatsApp! 📲✨
