Coretax VAT Draft Support
for Furniture & Fixtures.

For custom furniture or office interior fit-outs, buyers typically pay a 30%–50% down payment before workshop production begins. Under Article 13(1a) of the VAT Law and PER-11/PJ/2025 Article 31(2)(b), a Tax Invoice must be issued when the down payment is received because payment precedes physical delivery. The remaining balance triggers an invoice upon delivery or handover acceptance (BAST). All invoices must be approved in Coretax by the 20th of the following month (PER-11/PJ/2025 Art. 44). Late approvals incur an administrative penalty of 1% of the tax base (KUP Law Art. 14(4)).

Office furniture supplied to a government body, including through an e-catalog, can be collected by the treasurer. PMK 59/PMK.03/2022 Article 18(1)(a): a government body does not collect VAT when the payment is at most IDR 2,000,000 excluding the VAT, or the VAT and luxury-goods sales tax, that is due, and the payment is not split from a transaction that is actually more than IDR 2,000,000. Outside that exception the Tax Invoice uses transaction code 02. The treasurer collects the VAT, and the supply is still reported on the monthly VAT return under supplies whose VAT was collected by a collector. Paragraph (2) of the same article still requires the taxable supplier to collect, pay, and report VAT on payments the treasurer does not collect. Article 18 of PMK 59/2022 does not set a state-enterprise payment threshold.

Delivering knock-down furniture or office partitions often includes on-site assembly. If the supply is agreed as one furniture price, the tax base is the selling price (VAT Law Article 1(17)). The selling price is the money charged, including costs the seller asks for because of the supply of taxable goods, excluding VAT and a discount stated on the Tax Invoice (Article 1(18)). If assembly is billed separately as a taxable service, a corporate client withholds Article 23 income tax at 2% on the service fee under PMK 141/PMK.03/2015. That withholding reduces the cash received, not the tax base on the VAT invoice.

If a customer returns furniture due to timber defects, scratched coatings, or incorrect dimensions, reducing Output VAT legally requires an official Return Note under MoF Regulation 65/PMK.03/2014 recorded in the Coretax Return module. On purchases, furniture makers receive input invoices from suppliers of MDF boards, timber, steel frames, upholstery foam, fabrics, and hardware. All Input Tax Invoices must be checked against 16-digit NPWPs and workshop NITKUs before the 20th so crediting rights (VAT Law Art. 9) do not lapse.

Client uploads furniture order sheets, down payment bank slips, delivery orders, buyer return notes (if any), and input invoices from raw material suppliers.

Neracia operator prepares Coretax e-Faktur drafts for down payments and delivery handovers, maps private (01) vs government/SOE (02/03) codes, and ensures tax bases are accurate.

Operator validates raw material input invoices against 16-digit NPWPs and workshop NITKUs, enters defect return notes, and flags non-creditable purchases.

Operator hands over the reconciled draft Monthly VAT Return; client executives review, sign with their electronic passphrase in Coretax, submit, and pay billing codes independently.

Obligation to issue Tax Invoice when payment precedes delivery of taxable goods

Invoice timing for down payments and the 20th Coretax approval deadline

VAT withholding rules by government agency treasurers (code 02)

Article 23 2% withholding on separate assembly and installation services

Output VAT deduction for returned defective goods with official Return Notes

Coretax Drafter access without handing over passwords