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This guide provides an overview of e-Invoicing requirements in Indonesia, including the legal framework, the use of the e-Faktur Pajak system (online invoice application), compliance obligations, and key reporting considerations. It is intended to assist businesses that issue or receive invoices for transactions subject to VAT in Indonesia.
Indonesia’s e-Invoicing mandate is fully active.
Domestic
Domestic
Zero-rated VAT
The e-invoicing mandate applies to all VAT-registered taxpayers (PKP), including businesses with annual turnover above IDR 4.8 billion and qualifying non-resident digital service providers.
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No, not as a separate condition. Indonesia’s standard e-Faktur obligation is linked to the business being registered as a Pengusaha Kena Pajak (PKP), rather than specifically to having a permanent establishment. A permanent establishment (Bentuk Usaha Tetap/BUT) can itself be registered as an Indonesian taxpayer and, where applicable, as a PKP, but PE status is not the legal trigger for e-Faktur. Separately, certain non-established foreign digital suppliers can have Indonesian VAT obligations under the PMSE regime without a PE, but they do not follow the normal domestic e-Faktur process; they may issue a commercial invoice, billing, order receipt or similar document as VAT collection evidence.
Yes, for the standard Indonesian e-Faktur regime. The obligation to create a Faktur Pajak/e-Faktur applies to a business that has been confirmed as a PKP, which is Indonesia’s VAT-registered taxable entrepreneur status. DJP guidance confirms that PKPs are responsible for collecting VAT and creating electronic Faktur Pajak through Coretax. Businesses that are not PKP generally do not issue standard e-Faktur. The main exception is the separate PMSE regime for designated foreign digital VAT collectors, which is not the normal PKP/e-Faktur model.
Individual e-Faktur must be uploaded to DJP and obtain DJP approval no later than the 20th day of the month following the e-Faktur date. This is separate from the VAT return filing deadline; the monthly VAT return (SPT Masa PPN) is due by the end of the following month.
Invoices uploaded after the 20th of the following month are invalid for VAT credit. Failure to issue e-Faktur/Coretax invoices means VAT cannot be credited, and administrative fines apply.
Late VAT return filing incurs a penalty of IDR 500,000 per return.
Incorrect VAT reporting or fraud can result in penalties up to 100% of underpaid VAT and potential criminal charges.
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