Indonesia
Provinces
General
Provinces
General
About
General
About
General
General
General
Managed by the Directorate General of Taxes (DGT) through
the e-Faktur platform. Aims to enhance tax compliance, reduce VAT fraud, and
streamline business operations.
Implementation Timeline
| Date | Requirement | Details |
| July 1, 2016 | Introduction of e-Faktur | Mandatory e-invoicing for VATregistered businesses (Pengusaha Kena Pajak or PKP) to issue invoices electronically through the e-Faktur platform |
| December 1, 2020 | Version Update | The introduction of e-Faktur 3.0, requiring businesses to adapt to enhanced compliance requirements, including prevalidation of invoice data |
| 2025 (Planned) | Expansion to All Transactions | Indonesia is planning to extend mandatory e-invoicing to all business sectors and transactions as part of its digital tax transformation |
Who Needs E-Invoices?
E-invoicing in Indonesia is required for:- VAT-Registered Businesses (PKP): Required for all taxable supplies.
- Exporters: Must issue e-invoices for cross-border transactions to ensure VAT compliance.
- Non-Resident Businesses: Required if VAT-registered for transactions within Indonesia.
E-Invoicing vs. E-Billing
| Aspect | E-Invoicing | E-Billing |
| Purpose | Compliance with tax regulations | Informal or customerfocused transactions |
| Format | XML via e-Faktur | Non-regulated formats |
| Usage | Mandatory for taxable supplies | Optional for internal use |
Key Features of Indonesia’s E-Invoicing System
Indonesia’s e-invoicing system involves:- Submission Platform: Invoices must be submitted via e-Faktur in XML format.
- Validation: DGT ensures compliance with tax regulations and assigns a unique invoice code.
- Archiving: E-invoices must be stored electronically for 10 years under Indonesian tax laws.
E-Invoicing Dataset
E-invoices in Indonesia include the following critical data:- Buyer/Seller IDs: NPWP (Taxpayer Identification Number).
- Invoice Details: Number, date, and payment terms.
- Goods and Services: Descriptions, quantities, unit prices, and VAT details.
- Taxes: Applicable VAT rates and amounts.
- Transaction Info: Total payable amount, currency, and payment method.
- Digital Signature: Ensures authenticity and data integrity.
E-Invoicing Across Transaction Types
B2B Transactions:- Mandatory for VAT compliance and record-keeping.
- Facilitates cross-border transactions and VAT refunds.
- Not yet mandatory but encouraged to improve transparency and process optimization.
- Required for transactions with government entities to ensure compliance and transparency.
Penalties for Non-Compliance
Non-compliance with Indonesia’s e-invoicing regulations may result in:- Fines: IDR 500,000–5,000,000 (€30–€300) per violation.
- Operational Challenges: Rejected invoices may disrupt payments and operations.
- Legal Risks: Increased audits and reputational damage for repeated violations.
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