PKP vs Non-PKP
When to register as PKP, turnover threshold, and VAT implications.
PKP (Pengusaha Kena Pajak) is the status of a business registered with DJP as a VAT collector. Non-PKP is a business that has not been (or chosen not to be) registered.
This status determines VAT obligations, the right to credit input VAT, and very different administrative implications.
When PKP becomes MANDATORY
Turnover (peredaran bruto) > Rp 4.8 billion in a 12-month window.
Once turnover crosses this threshold, the business must register as PKP at the local KPP within 30 days. Lateness = penalty.
Businesses below the threshold may also register voluntarily ("voluntary PKP").
Key comparison
| Aspect | PKP | Non-PKP |
|---|---|---|
| Must collect PPN? | ✓ Yes, 11% non-luxury / 12% luxury | ✗ No |
| Faktur Pajak? | ✓ Required | ✗ Not allowed |
| Credit input VAT? | ✓ Yes | ✗ No |
| File SPT Masa PPN? | ✓ Monthly | ✗ No |
| Preferred by corporate buyers? | ✓ Yes (they can credit input VAT) | △ Depends |
| Administrative load | Higher | Lower |
Pros and cons of voluntary PKP
Pros
- Large corporate buyers prefer transactions with PKP because they can credit input VAT.
- Professional / established brand image.
- Required to win government tenders and large B2B contracts.
Cons
- Extra admin burden: issue a Faktur Pajak on every sale, file the monthly PPN SPT.
- Effective sale price is 11% higher for end-user customers (B2C) — competitive in B2B, less so in B2C.
- Responsibility for Faktur Pajak accuracy (errors carry penalties).
How esaFiskaly supports both modes
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Toggle the PKP flag.
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The invoice module hides PPN columns. The Faktur Pajak module is disabled. The SPT module shows only PPh forms.
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The invoice module shows DPP and PPN columns. The Faktur Pajak module is active with a DJP serial-number pool. SPT Masa PPN becomes available per period.
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Allowed at any time (e.g. after crossing the Rp 4.8B threshold). Past periods stay under the rules in effect at the time — no retroactive rewrites.
Implications for SMEs on Final 0.5%
SMEs using the Final 0.5% PPh rate (PP 55/2022) can remain non-PKP as long as turnover < Rp 4.8B.
- Individual SMEs: the first Rp 500m of annual turnover is exempt from Final PPh.
- Once turnover > Rp 4.8B: PKP is mandatory, and the business usually also exits the Final scheme (returns to standard corporate or progressive individual rates).