Coretax VAT Draft Support
for Garment & Apparel.

A garment workshop works in two ways: toll sewing, where the customer supplies fabric and trims, and full production, where the workshop supplies the materials. Toll sewing is a taxable service. The tax base of a service is the consideration (VAT Law Article 1(17) read with Article 1(19)), meaning the sewing fee, and Article 23 withholding of 2% follows PMK 141/PMK.03/2015. Finished clothes made with the workshop’s own materials are taxable goods. Their tax base is the selling price (Article 1(17) read with Article 1(18)): the money charged for the goods, excluding VAT and a discount stated on the Tax Invoice. For supplies other than luxury goods, VAT is a 12% rate times an other-value base of 11/12 (PMK 131/2024 Article 3). Neracia separates draft invoices for goods and toll services so the tax base stays accurate.

Custom corporate or school uniform orders require a 30%–50% down payment to procure fabrics before pattern cutting commences. Under Article 13(1a) of the VAT Law and PER-11/PJ/2025 Article 31(2), Tax Invoices must be issued upon down payment receipt in the bank account, rather than delayed until final garments are sewn and delivered. Approval delays in Coretax past the 20th of the following month trigger a 1% tax base administrative penalty (KUP Law Art. 14(4)). Neracia maps deposit receipts so draft e-Faktur are ready for client authorization on schedule.

Supplying workwear to government ministries, local agencies, or state-owned corporations follows special withholding agent (WAPU) procedures. Output tax invoices must use transaction code 02 for government treasurers (PMK No. 59/PMK.03/2022) or code 03 for state-owned enterprises (PMK No. 8/PMK.03/2021). VAT is not remitted by the garment producer but withheld directly by institutional treasurers. Neracia aligns transaction codes and reconciles withholding receipts with Coretax monthly returns.

Garment makers purchase textiles (fabric rolls, threads, buttons, zippers, printing, embroidery) from various textile mills and wholesalers. Every Input Tax invoice must be verified in Coretax against 16-digit NPWP and 22-digit NITKU to confirm creditable status under Article 9 of the VAT Law and PMK No. 81 of 2024. Receipts from unregistered non-PKP fabric shops yield no input VAT. Neracia compiles input tax reconciliation schedules to maximize valid tax credits without penalty risks.

Client uploads uniform order registers, work orders, deposit receipts, delivery notes, and textile supplier input invoices via a secure private folder.

Neracia human operator classifies pure CMT toll processing versus finished garment sales, verifies fabric input invoices in Coretax (16-digit NPWP & NITKU), and tags WAPU transactions.

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

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

Toll Manufacturing Rules, Article 23 Withholding at 2%, and Service Tax Base

Article 1(17) (tax base), 1(18) (selling price), 1(19) (service consideration), Article 4, Article 9, and Article 13

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

Tax Withholding Procedures by Government Agencies and State Enterprises as WAPU

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