Coretax VAT Draft Support
for Event Organizers.

Organizers frequently advance venue rental, catering, or talent costs. Under PMK No. 141/PMK.03/2015 Article 1(6)(b) and VAT Law Article 1(17), reimbursements of expenses paid on behalf of clients are excluded from gross service consideration, provided they are supported by original third-party invoices issued to the client without markups. If billed as an unitemized lump sum, the entire event budget may be deemed a taxable base subject to 11% VAT. Neracia separates invoices so draft Coretax tax bases reflect only management fees.

Event contracts typically require a 30%–50% down payment upon signing to secure venues and suppliers, followed by stage payments and final settlement upon completion. Under VAT Law Article 13(1a) and PER-11/PJ/2025 Article 31(2), Tax Invoices must be issued upon payment receipt when funds arrive prior to service delivery. Delaying invoicing until event completion or approving past the 20th of the following month triggers a 1% tax base penalty (KUP Law Art. 14(4)). Neracia maps milestone receipts so invoice drafts are ready on time.

Corporate clients withhold 2% Income Tax (PPh 23) from the gross management fee (PMK No. 141/PMK.03/2015). When clients are government institutions or state-owned enterprises (WAPU), VAT is collected directly under invoice transaction code 02 or 03 (PMK No. 59/PMK.03/2022). Event organizers frequently encounter discrepancies between net bank receipts and e-Bupot withholding certificates. Neracia reconciles invoices, invoice codes, and bank deposits methodically.

Staging events involves numerous suppliers: stage rigging, sound systems, lighting, generators, decoration, and freelance photographers. VAT-registered vendors issue Input Tax invoices that must be matched in Coretax against 16-digit NPWP and 22-digit NITKU to be creditable (VAT Law Art. 9 and PMK 81/2024). Payments to non-PKP suppliers or individual freelancers yield no input VAT and involve Article 21 withholding instead. Neracia filters creditable invoices and organizes VAT return workpapers.

Client uploads event work orders, milestone billing details, third-party reimbursement vouchers, and supplier invoices for equipment/staging via a secure private folder.

Neracia human operator separates genuine cost reimbursements from management fees, verifies VAT-registered vendor input invoices in Coretax (validating NIK/NITKU), and flags non-PKP vendors.

Neracia prepares draft Output e-Faktur in Coretax DJP (Drafter role) with accurate transaction codes (01 commercial or 02/03 government/SOE) ready for independent company sign-off.

Prior to month-end, Neracia drafts the Monthly VAT Return and PPh 23 reconciliation sheet. Company officers approve, sign with their digital certificate, submit, and generate payment codes independently.

Other Services, Exclusion of Non-Markup Reimbursements, and Article 23 Withholding

Article 1(17) (Tax Base), Article 4 (Taxable Services), Article 9 (Input Tax), and Article 13 (Tax Invoices)

Coretax Tax Invoice Procedures, Transaction Codes 01/02/03, and Approval Deadline on the 20th

Tax Withholding Procedures by Government Agencies as Withholding Agents (WAPU)

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