Coretax VAT Draft Support
for Engineering & Architecture.

Architectural and engineering contracts are billed in stages: mobilization advance, schematic design, detailed engineering design (DED), and periodic site supervision. Under VAT Law Article 13(1a) and PER-11/PJ/2025 Article 31(2), Tax Invoices must be issued upon advance payment or when progress acceptance certificates (BAST) are approved, whichever comes first. Coretax e-Faktur approval must conclude before the 20th of the following month to avoid the 1% tax base penalty (HPP Law / KUP Article 14(4)). Neracia aligns BAST dates with prompt e-Faktur drafts.

Engineering consultants frequently design public facilities for ministries/departments (Public Works) and state-owned developers. Under PMK No. 59/PMK.03/2022 and PMK No. 8/PMK.03/2021, services rendered to government entities undergo VAT withholding by official treasurers (code 02) or SOEs (code 03). Withheld VAT is not paid out-of-pocket by the consultant, but must be reported on the Coretax VAT Return. Selecting the wrong transaction code delays disbursement or skews tax balances. Neracia maps WAPU transaction codes with precision.

Consulting engineering and architectural services undergo a 2% Article 23 income tax withholding on gross fees excluding VAT (Income Tax Law Article 23 and PMK 141/PMK.03/2015). Corporate clients routinely transfer net fees after withholding this 2%. However, the VAT Tax Base (DPP) must strictly remain the gross service value before income tax withholding (VAT Law Article 1(17)). Neracia reconciles gross invoices, client e-Bupot 23 slips, and Coretax e-Faktur tax bases to eliminate turnover discrepancies upon return filing.

Consultancies subscribe to specialized design software (AutoCAD, Revit, SketchUp), hire geotechnical/MEP sub-consultants, and lease studio space. Domestic vendor input invoices must be verified against 16-digit NPWPs and consultant branch NITKUs in Coretax before the 20th to secure statutory crediting rights under VAT Law Article 9 and PMK 81/2024. Neracia compiles structured input invoice reconciliation workpapers so eligible operational expenses offset payable VAT balances to the fullest statutory extent.

Client uploads milestone design acceptance slips (BAST), project contracts, stage billing invoices, and client Article 23 withholding slips.

Neracia human operator separates private project billings from government/SOE tenders (WAPU) and verifies gross tax bases.

Neracia drafts e-Faktur in Coretax matched to BAST dates and verifies design software/studio lease input invoices before the 20th cutoff.

Operator provides the draft VAT Return detailing self-collected vs WAPU-withheld VAT; consultancy principals review, sign in Coretax, and submit independently.

Article 1(17) (tax base), Article 4(1)(c), Article 9, and Article 13

Tax invoice timing for taxable services and the 20th Coretax approval deadline

Designated Other Services and 2% Article 23 Income Tax Withholding for Consulting Services

Procedures for VAT Withholding by Government Entities and SOEs for Consulting Services

Tax Withholding, Collection, and Reporting Procedures on Coretax DJP Modules

Tax Representative Requirements, Drafter Role Boundaries Without Proxy, and Account Security