VAT declaration for Indonesia (ID-00004)
This article explains how to set up and generate the value-added tax (VAT) return form for legal entities in Indonesia. This form is often referred as SPT Masa PPN 1111 (Pajak Pertambahan Nilai). Corporate taxpayers should issue it to report the calculated amount of tax so that they can report VAT (PPN) and Luxury Goods Sales Tax (PPNnBM) that are owed. In addition to being used to report payments or pay taxes, the SPT Masa PPN 1111 form is used to report property, liabilities, and tax deposits from cutters or collectors.
The SPT Masa PPN 1111 (Pajak Pertambahan Nilai) page in Microsoft Dynamics 365 Finance includes the following reports:
- Master SPT Masa PPN 1111 form – This report provides a breakdown of amounts, adjustments, and VAT amount per line item in the VAT return form, as described in the legislation.
- Form 1111 AB
- A1 (Sales Export)
- A2 (List of Output Tax on Domestic Sales)
- B1 (Input Tax recoverable on Import)
- B2 (Input Tax recoverable for Domestic)
- B3 (Input Tax non recoverable)
Prerequisites
The primary address of the legal entity must be in Indonesia.
In the Feature management workspace, enable the following features:
- VAT statement format reports
- Enable credit invoicing for vendor invoices
For more information about how to enable features, see Feature management overview.
Upload Electronic reporting configurations
Implementation of the VAT return form for Indonesia is based on Electronic reporting (ER) configurations. For more information about the capabilities and concepts of configurable reporting, see Electronic reporting.
In the Electronic reporting workspace, import the VAT Declaration Excel (ID) ER format from the repository. This format is based on the Tax declaration model configuration and uses the Tax declaration model mapping configuration. These additional configurations will be automatically imported.
After you've finished downloading the ER configurations from Microsoft Dynamics Lifecycle Services (LCS) or the Global repository, complete the remaining steps in this article.
Set up application-specific parameters
The SPT Masa PPN 1111 page includes a set of boxes that correspond to specific parts of the PPN return process. Each box includes information about the base, adjustment, PPN (VAT), and PPNnBM (luxury tax) amounts. To include the requirements that are established by the form, configure each box with the information that is automatically provided from the sales tax transactions that are generated from sales, purchases, or other operations where PPN or PPNnBM tax is posted through the sales tax code configuration.
The application-specific parameters option lets you establish the criteria that define how the tax transactions are collected and calculated in each box of the declaration form when the report is generated, based on the configuration of the sales tax code. Here are some of the available criteria:
- Sales tax group
- Item sales tax group
- Sales tax code
- Transaction classifier
Example
Per the legal definition, BoxA1 - Export of Tangible BKP / Intangible BKP / JKP should include the total amount of export sales invoices, including credit notes.
Depending on the tax configuration in Finance, you can implement a specific sales tax group, item tax group, or sales tax code that represents and calculates the operations that are classified as export sales invoices. For this example, configure BoxA1 as shown here.
In the Electronic reporting workspace, select Configurations > Setup to set up the rules to identify the tax transaction in the related box of the SPT Masa PPN 1111 form.
Select the current version, and then, on the Lookups FastTab, select the lookup name ReportFieldLookup. This lookup identifies the list of boxes that the tax authority requires in the SPT Masa PPN 1111 form.
On the Conditions FastTab, select Add.
On the new line, in the Lookup result field, select the related line of the SPT Masa PPN 1111 form.
In the Sales tax group field, select the sales tax group that is used to calculate the related line of the SPT Masa PPN 1111 form. For example, select PPN_EXP.
In the Item sales tax group field, select *Not blank*, because box 1a will be identified only by sales tax group.
In the Tax code field, select *Not blank*, because box 1a will be identified only by sales tax group.
In the Transaction classifier field, select the tax transaction classification where the sales tax group code is used.
Repeat steps 3 through 8 for all SPT Masa PPN 1111 form boxes and the combination of sales tax code and tax transaction types that is configured in your legal entity.
Select Add, and then follow these steps to add the final record line:
- In the Lookup result field, select NA - Not applicable.
- In the Sales tax group field, select *Not blank*.
- In the Item sales tax group field, select *Not blank*.
- In the Tax code field, select *Not blank*.
- In the Transaction classifier field, select *Not blank*.
By adding this last record (NA), you define the following rule: If the tax code and name that are passed as an argument don't satisfy any of the previous rules, the transactions won't be included in the VAT return form. Although this rule isn't used when the report is generated, it helps prevent errors during report generation if there is a missing rule configuration.
In addition to the previous configuration, you must follow these steps to classify the tax type that the tax authority requires. You must be able to indicate whether the tax is PPN (VAT) or PPNnBM (luxury tax).
In the Electronic reporting workspace, select Configurations > Setup to set up rules to identify the tax transaction in the related box of the SPT Masa PPN 1111 form.
Select the current version, and then, on the Lookups FastTab, select the TaxTypeLookup lookup name. This lookup identifies the tax type that the tax authority requires in the SPT Masa PPN 1111 form.
On the Conditions FastTab, select Add.
On the new line, in the Lookup result field, select the type of tax. For example, select PPN.
In the Tax code field, select the sales tax code that represents the tax type that you selected in the Lookup result field. For example, select PPN10%.
Repeat steps 3 through 5 for all sales tax codes that are configured in your legal entity.
Select Add again, and then follow these steps to add the final record line:
- In the Lookup result field, select NA - Not applicable.
- In the Tax code field, select *Not blank*.
In the State field, select Completed.
Select Save.
Close the Application specific parameters page.
The following table represents an example that shows how to configure the parameters to establish the configuration between the different boxes in the declaration form and sales tax configuration that is implemented in Finance.
| Lookup result | Label | Line | Sales tax group | Item sales tax group | Tax code | Transaction classifier |
|---|---|---|---|---|---|---|
| BoxA1 | Export sales of tangible BKP, intangible BKP, and JKP | 1 | PPN_EXP | *Not blank* | *Not blank* | Sales |
| BoxA1 | Export sales of tangible BKP, intangible BKP, and JKP | 2 | PPN_EXP | *Not blank* | *Not blank* | SalesCreditNote |
| BoxA2 | Output taxes on domestic sales with tax invoices | 3 | PPN_DOM | *Not blank* | *Not blank* | Sales |
| BoxA2 | Output taxes on domestic sales with tax invoices | 4 | PPN_DOM | *Not blank* | *Not blank* | SalesCreditNote |
| BoxA2 | Output taxes on domestic sales with tax invoices | 5 | PPN_EXE | *Not blank* | *Not blank* | SaleExempt |
| BoxA2 | Output taxes on domestic sales with tax invoices | 6 | PPN_EXE | *Not blank* | *Not blank* | SalesExemptCreditNote |
| BoxB1 | Input taxes that can be on the import of BKP and utilization | 7 | PPN_IMP | *Not blank* | *Not blank* | Purchase |
| BoxB1 | Input taxes that can be on the import of BKP and utilization | 8 | PPN_IMP | *Not blank* | *Not blank* | PurchaseCreditNote |
| BoxB2 | Input taxes that can be credited for the acquisition of BKP | 9 | *Not blank* | *Not blank* | PPN10% | Purchase |
| BoxB2 | Input taxes that can be credited for the acquisition of BKP | 10 | *Not blank* | *Not blank* | PPN10% | PurchaseCreditNote |
| BoxB3 | Input taxes that can't be credited or that get facilities | 11 | *Not blank* | *Not blank* | PPN_NO | Purchase |
| BoxB3 | Input taxes that can't be credited or that get facilities | 12 | *Not blank* | *Not blank* | PPN_NO | PurchaseCreditNote |
| BoxAdj | Adjustments | 13 | *Blank* | *Blank* | PPN_ADJ | Sales |
| BoxAdj | Adjustments | 14 | *Blank* | *Blank* | PPN_ADJ | SalesCreditNote |
| BoxAdj | Adjustments | 15 | *Blank* | *Blank* | PPN_ADJ | Purchase |
| BoxAdj | Adjustments | 16 | *Blank* | *Blank* | PPN_ADJ | PurchaseCreditNote |
| NA | Not applicable | 17 | *Not blank* | *Blank* | *Not blank* | *Not blank* |
To help prevent issues when the report is generated, create all mappings where the sales tax codes and sales tax group are posted. For example, if SalesCreditNote is removed from the line for BoxA2 in this configuration, and tax transactions are posted by using the PPN_DOM sales tax group, you will encounter issues when the report is generated. Select Tax > Inquire > Posted sales tax to review all posted sales tax transactions and transactions that aren't included in this mapping of the configuration.
The following table shows the available values for the Transaction classifier field. This information explains how the tax transactions are classified and assigned to the related sales tax code.
| Classifier | Condition |
|---|---|
| PurchaseCreditNote | Credit note Tax direction = Sales tax receivable |
| Purchase | Not credit note Tax direction = Sales tax receivable |
| SalesCreditNote | Credit note Tax direction = Sales tax payable |
| Sales | Not credit note Tax direction = Sales tax payable |
| PurchaseExemptCreditNote | Credit note Tax direction = Tax-free purchase |
| PurchaseExempt | Not credit note Tax direction = Tax-free purchase |
| SalesExemptCreditNote | Credit note Tax direction = Tax-free sales |
| SaleExempt | Not credit note Tax direction = Tax-free sales |
| UseTaxCreditNote | Credit note Tax direction = Use tax |
| UseTax | Not credit note Tax direction = Use tax |
| PurchaseReverseChargeCreditNote | Credit note Tax direction = Sales tax receivable ReverseCharge_W = Yes |
| PurchaseReverseCharge | Not credit note Tax direction = Sales tax receivable ReverseCharge_W = Yes |
| SalesReverseChargeCreditNote | Credit note Tax direction = Sales tax payable ReverseCharge_W = Yes |
| SalesReverseCharge | Not credit note Tax direction = Sales tax payable ReverseCharge_W = Yes |
Set up General ledger parameters
To generate the SPT Masa PPN 1111 report in Excel format, define an ER format on the General ledger parameters page.
- Go to Tax > Setup > General ledger parameters.
- On the Sales tax tab, in the Tax options section, in the VAT statement format mapping field, select VAT Declaration Excel (ID). If you leave the field blank, the standard sales tax report will be generated in SQL Server Reporting Services (SSRS) format.
Generate an SPT Masa PPN 1111 report
The process of preparing and submitting an SPT Masa PPN 1111 report for a period is based on sales tax payment transactions that were posted during the Settle and post sales tax job. For more information about sales tax settlement and reporting, see Sales tax overview.
Follow these steps to generate the tax declaration report.
Go to Tax > Declarations > Sales tax > Report sales tax for settlement period or Settle and post sales tax.
Select the settlement period.
Select the from date.
Select the sales tax payment version.
Select OK.
In the next dialog box, enter the following information:
- The business activity code.
- The amount of compensation for excess VAT that was caused by correction of the tax period's VAT SPT, if applicable.
- The amount of VAT excess compensation for the previous tax period, if applicable.
- The date of compensation for excess VAT, if applicable.
- The amount of VAT that was paid in advance during the same tax period.
- The version number. Valid version numbers are from 0 through 7.
Select OK to confirm your settings and generate the report.
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