E-Invoicing in Indonesia

Indonesia is on the Road to E-invoicing

The Indonesian government started reforms by introducing the e-invoice system in 2013 when the electronic invoice system e-Faktur Pajak. From July 1, 2014, the Directorate General of Taxation (DGT), implemented an e-Factur solution for issuing tax invoices. E-invoicing was introduced in Indonesia successively and first covered taxpayers based in Java and Bali (2015), and then other companies. In 2016, DGT introduced the obligation for all companies to use the e-Invoices platform in order to ensure correct tax reporting. An electronic invoicing system implemented by the government is based on a clearance model where all issued invoices must be approved by the tax authority before being sent to the customer. The main objectives of the Indonesian government in this regard are to prevent tax fraud and improve trade.

E-invoicing process description

All companies with headquarters or branches on Indonesian territory are required to create e-invoices and send them electronically (XML format) to the Indonesian Tax Authority for validation. All invoices get a serial number (NSFP) and a QR code from which all invoice details can be read, and must be approved by the DGT (Director General of Taxation). If this process is successful, invoices with digital signatures are sent to thee-faktur system. The company will then receive proof that the invoice has been registered, and the approved invoice can then be sent to the buyer. Taxpayers are required to register in the e-faktur system and obtain an electronic certificate. Taxpayers should use e-faktur applications to prepare their periodic VAT returns. Invoices which are not issued as e-Faktur, or not accepted as in line with procedures, will be considered invalid.

Who is obliged to use e‑Invoicing in Indonesia

The obligation to use e-invoicing using the e-Factur platform applies to all companies in Indonesia.

What is the required format of an e-invoice

Accepted format is XML.

Platform is e-Factur system which consists of: e-Faktur Client Desktop application, Web Based e-Invoice application and Host-to-Host e-Invoice application.

Archiving requirements for e‑Invoicing in Indonesia

Required storage period is 10 years.

How integrity and authenticity may be ensured?

Taxpayers must obtain an electronic certificate to use e-Faktur Pajak system and request a range of serial numbers for e-invoices from tax authority. When all these requirements are met then taxpayers must issue e-invoices throught e-factur system so that e-invoices can be cleared by tax authorities (DGT) and get QR code.