Failure to File Tax Returns or Settle Tax Debts May Lead to Deactivation of Tax Invoice Access

JAKARTA. The Directorate General of Taxes (DGT) may deactivate the tax invoice issuance access of VAT-registered persons (PKPs) who fail to fulfill their tax obligations.

Actions that may lead to such deactivation include failure to file tax returns, both annual and periodic, as well as having outstanding tax liabilities.

The criteria for deactivation of tax invoice access are detailed in the Director General of Taxes Regulation Number PER-19/PJ/2025, which serves as an implementing regulation of Article 65 of the Minister of Finance Regulation (PMK) Number 81 of 2024.

In essence, the DGT is authorized to deactivate tax invoice issuance access if a PKP is found to have misused such access or meets other criteria as specified in PER-19/PJ/2025.

Criteria for Deactivation of Access to Tax Invoice Issuance

The right to access the issuance of tax invoices may be deactivated if a VAT-Registered Person (PKP) meets any of the following conditions:

1. Fails to withhold or collect taxes that should be withheld or collected for three consecutive months
2. Fails to submit the Annual Income Tax Return as required
3. Fails to submit the VAT Periodic Tax Return for three consecutive tax periods
4. Fails to submit the VAT Periodic Tax Return for six tax periods within one calendar year
5. Fails to report withholding or collection tax certificates for three consecutive months
6. Has outstanding tax liabilities of at least:

• IDR 250 million for Taxpayers registered at a KPP Pratama (Primary Tax Office)
• IDR 1 billion for Taxpayers registered at tax offices other than KPP Pratama, and a warning letter has been issued

These arrears criteria do not apply if the Taxpayer already has a valid installment or tax debt payment deferral approval letter.

Right to Submit Clarification

The deactivation of access to tax invoice issuance may be cancelled by submitting a clarification to the Tax Office (KPP) where the Taxpayer is registered, along with supporting documents.

Supporting documents may include:

• Tax withholding slips or tax collection slips for three consecutive months
• Receipt of submission of the Annual Income Tax Return
• Receipt of submission of the VAT Periodic Tax Return for three consecutive tax periods
• Receipt of submission of VAT Periodic Tax Returns for six tax periods within one calendar year
• Documentation of reporting tax withholding or collection slips for three consecutive months
• Proof of settlement of tax arrears or a valid approval letter for tax installment or deferral

Clarification Approval

The Directorate General of Taxes (DGT) may approve or reject the clarification within five working days from the date the clarification is received.

If the clarification is approved, access to tax invoice issuance will be reactivated.

If the DGT does not issue a decision within five working days, the KPP must reactivate the access.

However, if, after reactivation, the VAT-Registered Person (PKP) continues to fail to meet their tax obligations, access may be deactivated again.

Revocation of VAT-Registered Status

In accordance with Article 65 of PMK No. 81/2024, if the PKP does not submit a clarification within 30 days from the date of access deactivation, the DGT may revoke the PKP status ex officio.

The VAT- VAT-registered status may be reinstated once the Taxpayer can prove that all tax obligations have been fulfilled. (ASP/KEN)