Training PO, VAT & Tax Invoice Procedure in Indonesia (Including BUMN & LKPP): An Operational Guide for Procurement, Finance, and HR/L&D

Short answer: Buying training in Indonesia follows this flow: quotation → PO/SPK/contract → delivery → BAST (handover minutes) → billing (invoice + tax invoice + stamped receipt) → payment. The taxes: VAT nominal 12% but effective 11% for non-luxury services (HPP Law), and Article 23 income tax (PPh 23) 2% of gross (4% if the vendor has no NPWP) because training is a technical service. What determines who collects VAT and which invoice code applies is the buyer type: private (code 01), government agency (code 02, PMK 59/2022), or BUMN/other collector (code 03) — with the LKPP e-Catalog route for government.

This topic is almost never covered end to end. Tax articles explain VAT and income tax generically; procurement articles explain POs generically; none assemble the two specifically for a training transaction, complete with the differences between private, government, and BUMN buyers and the LKPP route. This guide assembles it into an operational flow that procurement, finance, and HR/L&D can run directly — from both sides: buyer and vendor.

Intended readers: Procurement, Finance & Tax, and HR / L&D in private companies, state-owned enterprises (BUMN/BUMD), government agencies, institutions, and non-profits.

Quick navigation

1. Flow overview: from PO to payment
2. Base documents: PO vs SPK vs contract/PKS
3. Training VAT: 12% nominal, 11% effective, who collects
4. Tax invoice: Coretax, transaction codes 01/02/03, NSFP
5. Article 23 income tax: 2%/4%, withholding slip, gross-up
6. Private buyer: the full flow
7. Government-agency buyer: collecting treasurer (PMK 59/2022)
8. BUMN buyer: RKAP & collector status
9. The LKPP route: e-Catalog Version 6 & procurement
10. Stamp duty, BAST & billing-document checklist
11. Summary table by buyer type
12. Worked calculation (illustrative)
13. Common mistakes & how to avoid them
14. Glossary
15. FAQ
16. Next step

Flow overview: from PO to payment

Whatever the buyer type, a training transaction follows these seven stages. What changes between buyer types is who collects VAT and the administrative documents, not the sequence.

1. Quotation & negotiation — vendor proposal/RAB, agreement on scope, price, tax position, terms.
2. Issue PO/SPK/contract — the binding order document; states value, VAT position (inclusive/exclusive), PPh mechanism, schedule, and billing conditions.
3. Training delivery — sessions run per scope.
4. Handover Minutes (BAST) — proof of work completed/accepted; the billing trigger. Without BAST, billing usually cannot be processed.
5. Billing — the vendor sends an invoice + tax invoice + stamped receipt + attachments (PO, BAST, attendance/report).
6. Tax withholding/collection — the buyer withholds PPh 23; if the buyer is a collector, it also collects VAT.
7. Payment & withholding slip — payment per terms; the buyer issues the PPh withholding slip (via Coretax) to the vendor.

Principle: BAST is the heart of the administration. Agree the BAST format and signatories at PO stage; many payments are delayed not by tax but by a messy BAST.

Base documents: PO vs SPK vs contract/PKS

All three are binding bases; choose by value and risk:

• Purchase Order (PO) — a formal purchase order; binding once approved. Suitable for standard programs of reasonable value.
• SPK (Work Order) — common in government/BUMN as a work-execution order, often referencing procurement documents.
• Contract / Cooperation Agreement (PKS) — for large, multi-session, multi-month, or higher-risk programs: full clauses (scope, terms, VAT position, PPh mechanism, confidentiality/NDA, personal-data protection, termination).

What matters is not the document label but whether it explicitly states price inclusive/exclusive of VAT, the PPh 23 mechanism, the billing trigger (BAST), and payment terms. A contract vague on those four is the most common source of billing disputes.

Training VAT: 12% nominal, 11% effective, who collects

Training is a Taxable Service. A VAT-registered (PKP) vendor must issue a tax invoice (faktur pajak).

Under the HPP Law (Law No. 7 of 2021), the nominal VAT rate became 12% from 1 January 2025. For non-luxury goods/services — including training — the effective rate stays 11% via the "other tax base" (DPP Nilai Lain) mechanism. In practice: compute training VAT at 11% of the service value unless a special provision applies.

Who collects VAT depends on the buyer type:

• Ordinary private buyer — VAT is collected by the PKP vendor itself (invoice code 01); the vendor remits and reports the VAT.
• Government agency — the agency treasurer collects VAT (invoice code 02); see the PMK 59/2022 section.
• Other VAT collector (e.g. a designated BUMN) — that collector collects VAT (invoice code 03).

So the "price inclusive/exclusive of VAT" position must be explicit in the PO; an 11% difference on a large program is not an amount to "settle later".

Tax invoice: Coretax, transaction codes 01/02/03, NSFP

Since 2025, core tax administration runs on Coretax DJP, which consolidates legacy applications (including e-Faktur and e-Bupot) into one platform with a prepopulated feature. Tax invoices and withholding slips are now issued through Coretax — ensure the vendor is active on Coretax and identity (NPWP/NIK) is matched so the invoice is valid and creditable by the buyer.

Each invoice carries a 17-digit Tax Invoice Serial Number (NSFP): 2-digit transaction code + 2-digit status code (00 = normal; 01, 02, … = replacement invoice) + 13-digit serial. The transaction codes relevant to training:

Code	Used when	Typical buyer
01	VAT collected by the selling PKP itself	Ordinary private company
02	Supply to a government-agency VAT collector	Ministry/agency/region (treasurer)
03	Supply to a VAT collector other than a government agency	A designated BUMN/entity collector
07	VAT not collected / borne by government (special facility)	Per a specific facility provision

A wrong code = rejected invoice, non-creditable VAT, delayed payment. Set the correct code at PO stage based on buyer status, not at billing.

Article 23 income tax: 2%/4%, withholding slip, gross-up

Training is classified as a technical service (per SE-35/PJ/2010). Consequently, the buyer withholds Article 23 income tax (PPh 23):

• 2% of the gross value (excluding VAT) if the vendor has an NPWP.
• 4% (100% higher) if the vendor has no NPWP.

The withholding slip is issued by the buyer via the DGT system (Coretax since 2025) and given to the vendor as a tax credit. Make the vendor NPWP a PO condition — the 2% gap plus administration is not worth accepting a vendor without an NPWP.

Gross vs net & gross-up. PPh 23 reduces what the vendor receives. If the commercial deal requires the vendor to net a certain amount, the PPh cost is shifted to the buyer via gross-up (the contract value is raised so that after withholding the vendor nets the target). Decide this during negotiation, not at billing — gross-up changes the budget charge.

Private buyer: the full flow

The most common, simplest scenario:

1. PO issued (service value + clear VAT position).
2. Training delivered; BAST signed.
3. Vendor bills: invoice + tax invoice code 01 (effective 11% VAT) + stamped receipt + attachments.
4. Buyer withholds PPh 23 2% of the gross service value (excluding VAT), issues a withholding slip via Coretax.
5. Buyer pays: service value − PPh 23 + VAT (per the inclusive/exclusive position); the vendor remits & reports its own VAT.

Here the PKP vendor collects VAT; the buyer's job is to withhold PPh 23 and keep the invoice for crediting.

Government-agency buyer: collecting treasurer (PMK 59/2022)

For ministries/agencies/regional governments, the government-agency treasurer acts as a Tax Collector. The basis is PMK 59/PMK.03/2022 (amending PMK 231/PMK.03/2019), effective 1 May 2022.

Operational points:

• VAT collected by the treasurer, not remitted by the vendor. The vendor issues a code-02 invoice. For payments up to IDR 2,000,000 (excluding VAT/LST) that are not split, VAT is not collected by the treasurer but self-remitted by the vendor; corporate training is usually well above this threshold, so VAT is collected by the agency.
• Income tax withheld by the treasurer — for training services, PPh Article 23; (PPh Article 22 applies to goods purchases, not training services).
• Payment via the APBN/APBD mechanism (e.g. SP2D), often with terms and extra documents per the SPK and procurement system.

Because the agency collects/remits VAT and income tax, the vendor receives the post-deduction amount and relies on the treasurer's collection/withholding slips. An invoice-code mismatch (must be 02) is the most frequent cause of billing rejection on this route.

BUMN buyer: RKAP & collector status

BUMN/BUMD budget training within the RKAP (Corporate Work & Budget Plan) and procure it under each entity's internal procurement rules (aligned with the BUMN procurement framework; some BUMN also use the Electronic Catalog).

Tax position:

• A BUMN not designated as a VAT collector is treated like an ordinary private buyer: the vendor collects VAT, invoice code 01.
• A specific designated BUMN VAT collector: that BUMN collects VAT, the vendor issues an invoice code 03.
• PPh 23 on training is still withheld by the BUMN as the income payer.

Because collector status differs between BUMN, confirm with the target BUMN's tax/procurement unit whether the invoice should be code 01 or 03 before issuing — do not assume from the entity name.

The LKPP route: e-Catalog Version 6 & procurement

Government procurement follows Presidential Regulation 16/2018 as amended by 12/2021 and LKPP Regulation No. 12/2021 (amended LKPP Regulation No. 4/2024); the Electronic Catalog is governed by LKPP Regulation No. 9/2021.

The dominant route now is Electronic Catalog Version 6, launched 10 December 2024 and mandatory for ministries/agencies/regions since 1 January 2025, accessed via e-purchasing on SPSE/INAPROC:

• A Procurement Official (PP) does catalog e-purchasing for values up to IDR 200,000,000.
• The PPK handles values above IDR 200,000,000, typically with negotiation/mini-competition among listed suppliers.
• Outside the catalog, other methods (direct procurement, tender) apply per the Presidential Regulation thresholds and rules.

For the vendor: requirements are a supplier account on SPSE, legal completeness (deed/NIB/NPWP), SIKaP data, and training products/services listed in the catalog so they can be bought via e-purchasing. For the buyer: ensure the vendor is a legitimate catalog supplier and the contract/SPK documents match the system.

Supplier legality (LPK/BNSP/LSP) is covered fully in the corporate training vendor-selection guide.

Stamp duty, BAST & billing-document checklist

Stamp duty. Under Law No. 10 of 2020 on Stamp Duty, certain documents (e.g. receipts above a value threshold, agreements) carry a IDR 10,000 stamp duty, now commonly as an e-stamp (e-meterai). Affix the stamp on documents that require it so the bill is valid.

BAST/minutes are the billing trigger; without signed work-completion minutes from an authorized party, finance generally withholds payment.

Billing-document checklist (ready to use):

• Invoice matching the PO/SPK/contract value.
• Tax invoice with the correct transaction code (01 private / 02 government agency / 03 other collector).
• Receipt with an electronic IDR 10,000 stamp duty as required.
• A signed copy of the PO/SPK/contract.
• BAST/work-completion minutes, signed by an authorized party.
• Delivery attachments: attendance list, report/certificate, agenda.
• Entity NPWP & a bank account in the entity name.
• VAT position (inclusive/exclusive) consistent with the PO.
• Extra documents per the government/BUMN procurement system (if applicable).

Summary table by buyer type

Aspect	Ordinary private	Government agency	BUMN
VAT collector	PKP vendor	Agency treasurer (PMK 59/2022)	BUMN if designated; else vendor
Invoice code	01	02	03 (if collector) / 01
Effective VAT rate	11%	11%	11%
PPh 23 on training	Buyer withholds 2% (4% non-NPWP)	Treasurer withholds	BUMN withholds
VAT-not-collected threshold	—	≤ IDR 2m (excl. VAT), not split	per collector rules
Document basis	PO/contract	SPK + procurement docs	SPK/contract + internal procurement docs
Common procurement route	Direct/contract	e-Catalog v6 / Presidential-Reg procurement	RKAP + internal procurement/catalog
Withholding slip	Coretax	Coretax	Coretax

Worked calculation (illustrative)

Numbers to demonstrate the mechanism, not real prices or clients.

A training service value is agreed at IDR 100,000,000, "exclusive of VAT", the vendor has an NPWP/PKP, a private buyer:

• Effective VAT 11% = IDR 11,000,000 → the vendor issues a code-01 invoice; gross bill = IDR 111,000,000.
• PPh 23 2% of the gross service (excluding VAT) = 2% × IDR 100,000,000 = IDR 2,000,000, withheld by the buyer; a withholding slip is issued via Coretax.
• What the buyer pays the vendor = IDR 100,000,000 − IDR 2,000,000 (PPh 23) + IDR 11,000,000 (VAT) = IDR 109,000,000. The vendor remits IDR 11,000,000 VAT and uses the IDR 2,000,000 slip as its tax credit.

If the buyer is a government agency: the IDR 11,000,000 VAT is collected/remitted by the treasurer (invoice code 02), PPh 23 withheld by the treasurer; the vendor receives the post-PPh service value and relies on the agency's collection/withholding slips. If the vendor has no NPWP, PPh becomes 4% = IDR 4,000,000 — the vendor's receipts drop, the reason to make NPWP a PO condition.

Common mistakes & how to avoid them

Key takeaways:

• Vague VAT position in the PO → write "inclusive/exclusive of VAT" explicitly and compute at the 11% effective rate.
• Wrong invoice code → set 01/02/03 at PO stage per buyer status; confirm BUMN per entity.
• Vendor without NPWP → make NPWP a PO condition; PPh 23 jumps to 4%.
• Messy BAST → agree the format & signatories upfront; it is the billing trigger.
• Missing stamp/documents → use the billing checklist; a receipt without an e-stamp can be rejected.
• Assuming all BUMN/government are the same → government agencies collect VAT (PMK 59/2022); BUMN depends on collector status.
• Not active on Coretax → ensure the vendor is registered & data matched so invoices/slips are valid.

Glossary

• PO (Purchase Order) — a formal purchase order, binding once approved.
• SPK (Work Order) — a work-execution order, common in government/BUMN.
• BAST — Handover Minutes; proof of work completed/accepted, the billing trigger.
• PKP — VAT-registered enterprise; must issue tax invoices.
• VAT (PPN) — Value Added Tax; nominal 12%, effective 11% for non-luxury services (HPP Law).
• PPh 23 — income-tax withholding on services (training = technical service, 2%/4%).
• NSFP — Tax Invoice Serial Number, 17 digits (transaction code + status + serial).
• Coretax — DGT's core tax-administration system since 2025 (consolidates e-Faktur/e-Bupot).
• WAPU (designated collector) — a party designated to collect VAT (government agency/certain BUMN).
• e-Catalog / e-purchasing — the LKPP Electronic Catalog system & purchase method (now Version 6).
• SPSE/INAPROC — the government Electronic Procurement System.

FAQ

Is training a VAT-taxable service, and what is the rate in 2026?

Yes. Training is a Taxable Service; a VAT-registered (PKP) vendor must issue a tax invoice (faktur pajak). Under the HPP Law (Law No. 7 of 2021), the nominal VAT rate became 12% from 1 January 2025, but for non-luxury goods/services — including training — the effective rate remains 11% via the 'other tax base' (DPP Nilai Lain) mechanism. Ensure the contract/PO states whether the price is inclusive or exclusive of VAT so there is no gap at billing.

What income-tax withholding applies to training, and on what basis?

Training is classified as a technical service (per SE-35/PJ/2010), so the buyer withholds Article 23 income tax (PPh 23) at 2% of the gross value (excluding VAT) if the vendor has an NPWP; the rate is 4% (100% higher) if the vendor has no NPWP. The withholding slip is issued via the DGT system (Coretax since 2025). Make the vendor's NPWP a PO condition to avoid a larger deduction and extra administration.

What is the difference between tax-invoice codes 01, 02, and 03 for training?

Code 01 is used when VAT is collected by the selling PKP vendor itself — ordinary private buyers. Code 02 is used for supplies to a government-agency VAT collector (VAT collected/remitted by the agency treasurer). Code 03 is used for supplies to other VAT collectors besides government agencies (e.g. a designated state-owned enterprise acting as collector). A wrong code makes the invoice rejected and payment delayed — agree the code at PO stage.

What is the flow from PO to payment for buying training?

A healthy flow: (1) proposal/RAB & negotiation; (2) issue a PO or SPK/contract stating scope, price, tax position, and terms; (3) deliver the training; (4) a Handover Minutes (BAST)/work-completion minutes as the billing trigger; (5) the vendor bills with invoice + tax invoice + stamped receipt; (6) the buyer withholds PPh 23 and, if a collector, collects VAT; (7) payment per terms and the withholding slip is issued.

Do government agencies self-collect VAT and income-tax on training?

Yes. Under PMK 59/PMK.03/2022 (amending PMK 231/PMK.03/2019, effective 1 May 2022), a government-agency treasurer is a VAT Collector and income-tax withholder. For transactions up to IDR 2,000,000 (excluding VAT) that are not split, VAT is not collected by the treasurer but self-remitted by the vendor; above that, the agency collects VAT and the vendor issues a code-02 invoice. PPh 23 on training is still withheld by the agency.

How does training procurement work via the LKPP e-Catalog?

Government procurement follows Presidential Regulation 16/2018 jo. 12/2021 and LKPP Regulation No. 12/2021 (amended No. 4/2024). The dominant route is now Electronic Catalog Version 6 (mandatory for ministries/agencies/regions since 1 January 2025) via e-purchasing on SPSE/INAPROC: a Procurement Official handles values up to IDR 200,000,000, above that the PPK with negotiation/mini-competition. The vendor needs a supplier account, legal/NPWP completeness, and listed products/services in the catalog.

What documents must a vendor prepare when billing?

Typically: invoice, tax invoice (transaction code matching the buyer type), a receipt with an electronic IDR 10,000 stamp duty (Law No. 10 of 2020 on Stamp Duty), a copy of the PO/SPK/contract, the Handover or work-completion minutes, attendance lists/delivery reports, plus the entity NPWP and a bank account in the entity name. Government/BUMN buyers usually add documents per the SPK and their procurement system.

What is the difference between a PO, an SPK, and a contract/PKS?

A Purchase Order (PO) is a formal binding purchase order once approved, suitable for standard transactions. An SPK (Work Order) is common in government/BUMN as the basis to execute work. A contract/Cooperation Agreement (PKS) is used for large, multi-session, or higher-risk programs, with full clauses (scope, terms, tax, confidentiality, personal data). What matters is not the label but clause completeness and a clear tax position.

Is the proposal price inclusive or exclusive of VAT — why does it matter?

It matters greatly because it determines the final billed amount and budget charge. 'Exclusive of VAT' means the buyer adds the 11% effective VAT on top; 'inclusive of VAT' means VAT is already inside. Separately, PPh 23 at 2% is withheld from the gross so the vendor receives less. Agree the VAT position and the PPh mechanism at PO stage to prevent billing disputes and budget revisions.

What is Coretax and how does it affect tax invoices & withholding slips?

Coretax DJP is the core tax-administration system effective since 2025, replacing legacy applications such as e-Faktur and e-Bupot in a single platform. Tax invoices and income-tax withholding slips are now issued through Coretax, with a prepopulated feature. Practical implication: ensure the vendor is active on Coretax and identity data (NPWP/NIK) is matched so invoices and withholding slips are valid and creditable.

Next step

You now have the full flow: PO/SPK → delivery → BAST → billing (correct invoice code + stamp) → withhold/collect tax → pay, with the clear differences between private, government-agency (PMK 59/2022), and BUMN buyers, plus the LKPP e-Catalog route. The sensible next step is to request a proposal that is explicit from the start about the VAT position, NPWP/PKP, invoice code, and procurement-document readiness — before the PO is issued.

Neksus prepares this administration from the proposal: NPWP/PKP, a tax invoice with the transaction code matching the buyer type, VAT/PPh 23 handling, BAST & procurement-document readiness for BUMN/government, and active on Coretax. Discuss your need and request an administratively clean quotation via the Neksus contact page — no obligation.

Also read:

• How to Choose a Corporate Training Vendor / Provider
• Building a Training Budget (RAB) & Annual Training Plan
• Training Needs Analysis (TNA): What, Why, How
• See the full training catalog →

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Last updated: 17 May 2026. The tax and procurement sections explain generally applicable mechanisms (HPP Law No. 7/2021; SE-35/PJ/2010; PMK 59/PMK.03/2022 jo. PMK 231/PMK.03/2019; PMK 58/PMK.03/2022; Presidential Reg. 16/2018 jo. 12/2021; LKPP Reg. No. 12/2021 jo. No. 4/2024 & No. 9/2021; Law No. 10/2020 on Stamp Duty; the Coretax DJP system) and are confirmed per contract following the latest regulation — not final tax advice; validate with your tax/legal team. The worked calculation is illustrative; Neksus does not display client names or success statistics.