Coretax VAT Drafts
for Heavy Equipment & Machinery.

Purchases of heavy equipment and factory machinery require indent down payments months before units ship and clear customs. Under VAT Law Article 13(1a)(b) and PER-11/PJ/2025 Article 31(2), Tax Invoices must be issued upon receipt of down payments in the bank account, not when machines arrive or handover notes are signed. Neracia maps bank settlements so down payment drafts are ready for timely approval.

Heavy equipment sales to state-owned enterprises, licensed mining operators, or government bodies involve VAT withholding under transaction code 02 or 03 pursuant to PMK 59/PMK.03/2022 and PMK 81/2024 Article 294. Incorrect transaction codes in Coretax cause invoice rejections and disbursement delays. Neracia verifies withholding transaction codes on draft invoices.

Heavy equipment procurement contracts frequently bundle spare parts with periodic technician maintenance services. Spare parts are taxable goods subject to 12% VAT, whereas technician fees incur 2% Article 23 income tax withholding. Neracia separates invoice components so VAT tax bases and Article 23 certificates remain reconciled.

Distributors import machinery units settling import VAT via PIB declarations and SSPCP payment slips based on official tax exchange rates. Additionally, specialized heavy transport from port to job site yields input tax invoices that must be matched in Coretax DJP before the 20th. Neracia compiles import and freight tax reconciliation workpapers.

Client shares equipment delivery orders, customer purchase orders, commissioning acceptance records, and import declaration PIBs.

Neracia matches deposit clearing dates, separates government WAPU from commercial clients, and drafts e-Faktur in Coretax before the 20th.

Machinery import PIBs and heavy haulage logistics invoices are verified for credit eligibility in the draft Coretax VAT return.

Neracia prepares drafts only. The client inspects, approves, signs, submits in Coretax, creates billing codes, and pays tax independently.

Framework for tax invoices and input VAT credit eligibility.

Implementing provisions for VAT on goods and services.

Tax invoice administration and reporting in Coretax DJP.

Coretax administration framework; read with the amendments listed in the official regulation history.

VAT treatment reference; check specific provisions before selecting the tax base.

VAT withholding procedures by government institutions and state-owned enterprises (WAPU).