Examples of the Start of Obligations of PKPs Registered Past Deadline

Pursuant to Article 17 paragraph (3) of MoF Reg. 164/2023, the obligation to report businesses to be registered as PKP shall be exercised no later than the end of the accounting year the amount of gross turnover and/or gross revenues exceeds the threshold. See ‘Examples of Start of PKP Obligations Art. 18 p. (1) of MoF Reg. 164/2023’.

“If … the entrepreneurs report their businesses to be registered as PKP after the time limit … must collect, remit and file VAT or VAT and STLGs payable starting the taxable period of the registration as PKP,” reads a fragment of Article 19 paragraph (1) subparagraph a of MoF Reg. 164/2023, quoted on Tuesday (23/1/2024).

Article 19 paragraph (2) of MoF Reg. 164/2023 also contains the provisions on the exercise of rights and the fulfilment of obligations of PKP 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 PKP.

Pursuant to this article, the exercise of rights and fulfilment of obligations are implemented through the filing of Periodic VAT Returns pursuant to statutory tax provisions.

“Periodic VAT Returns referred to in … must be filed in the event of VAT or VAT and STLGs which should otherwise be collected,” reads a fragment of Article 19 paragraph (3) of MoF Reg. 164/2023.

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

The following is an example of the application of the provisions under Article 19 paragraph (1) subparagraph a of MoF Reg. 164/2023.

PT B has just reported its business to be registered as PKP to the Bangka Small Taxpayer Office. The filing is performed by applying for PKP registration on 22 August 2025.

The filing is not without notification of the taxable period to start collecting, remitting and filing VAT or VAT and STLGs payable in the application for PKP registration.

The accounting year period used by PT B is 1 January to 31 December. Based on the application, the head of Bangka Small Taxpayer Office issued a PKP registration letter stating the date PT B is registered as PKP as 1 January 2026.

However, based on data and/or information obtained by the Directorate General of Taxes (DGT), it is known that before being registered as a PKP on 1 January 2026, PT B has gross turnover and/or gross revenues exceeding the small-scale entrepreneur threshold on 2 June 2024.

Therefore, PT B should be required to report its business to be registered as a PKP no later than 31 December 2024.

Thus, as a PKP, PT B must:

• collect, remit and file VAT or VAT and STLGs payable and prepare tax invoices starting the January 2026 taxable period, i.e. starting on 1 January 2026; and
  

• fufil the obligations of VAT or VAT and STLGs which should be otherwise collected for the period between 1 January 2025 and 31 December 2025 pursuant to statutory tax provisions.
  

See also ‘Start of VAT Collection, Remittance and Filing in MoF Reg. 164/2023’. (kaw)