Indonesia: Electronic Tax Invoice Form (e-tax Invoice or “e-faktur”)

With regards to the enforcement of Tax Invoice in electronic form (e-TAX INVOICE), the Directorate General of Taxation (DGT) has announced the following tax regulations: 

a. The Minister of Finance Regulation No. 151/ PMK.03/2013 concerning the Procedures of issuance and Procedures of the Tax Invoice revision or replacement; 

b. The DGT’s Regulation No. PER-16/PJ/2014 concerning the Procedures of issuance and reporting of Electronic Tax Invoice; 

c. The DGT’s Regulation No. PER-17/PJ/2014 concerning the second amendment to the DGT’s Regulation No. PER 24 / PJ / 2012 concerning the Form, Size, Procedures for filling information, Notification Procedures in order to issuance, revision or replacement, and the cancellation of Tax Invoice; and 

d. The DGT’s Decision No. KEP-136/PJ/2014 concerning the appointment of VAT-able Entrepreneurs which are required to issue the electronic tax invoice.

The implementation of e-Tax Invoice is intended to provide convenience, comfort, and safety for the VATable Entrepreneurs (“PKP”) in fulfilling tax obligations in particularly the issuance of Tax Invoice. In addition, e-tax invoice also benefits taxpayers by saving the cost of compliance, i.e. cost of paper, shipping, printing, employment verification, coding, and reduce personnel employed. Through the electronic tax invoice, the DGT will improve the efficiency of the process of tax audit and VAT refund proceeding. Since the year 2011, the DGT faces a major problem in administering the tax invoice number reached 200 million for each year. Indonesian economic development would increase the number of transactions that will be increasingly overwhelmed Taxation administration tax invoice when done manually. In addition, an electronic-based system will minimize the misuse of tax invoices by the use of fictitious companies or parties who are not responsible for lost tax so that the potential becomes very small. 

Furthermore, 45 of PKP are required to issue the electronic tax invoice starting from July 1, 2014. The first stage enacted July 1, 2014 for certain PKP confirmed in the Large and Middle Taxpayer Tax Office. Then began July 1, 2015 e-Tax Invoice will be applied to the entire PKP in the Tax Office Java and Bali. While the enforcement of e-Tax Invoice nationally will simultaneously begin on July 1, 2016.

Purchasers of taxable goods and/or taxable services from the said 45 PKP hereby notified that a Tax Invoice will be issued in electronic form (e-Tax Invoice). 

The entire tax invoice data transmitted by PKP to DGT system aims to obtain approval from the DGT approval. The e-Tax invoice tax without the approval of the DGT is not considered as a tax invoice. 

As for how to create an e-Tax invoice has been prepared by the DGT to build e-channeling tax invoice in several stages, i.e. the first stage of a client application, where the PKP make tax invoice by DGT given application and then installed on the PC belonging to PKP. The data will be synchronized to the DGT system. The second phase are a website application, PKP make a tax invoice DGT by going to the website and fill out a tax invoice. The third stage in the form of host-to-host system, PKP create tax invoices through the system or applications owned by PKP. Then the data is sent to the DGT system using messaging protocols or standards agreed. 

The important things in relation to the e-Tax Invoice can be described as follows: 

a. The e-Tax Invoice is in the electronic form. Hence it is not required to be printed in paper form. However, in terms of paper prints required by both the seller and / or buyer, e-Invoices are welcome to print as needed. 

b. The e-Tax Invoice is signed electronically so no longer required to be wet signed by an officer / employee appointed by VAT-able Entrepreneurs.

c. The e-Tax Invoice is using Rupiah currency 

If the e-Tax Invoice is printed on paper that is supplied exclusively by VAT-able Entrepreneurs, for example, a paper that has been printed company logo, address, or other information, then e-Tax Invoices is printed on paper that still accepted as a Tax Invoice.

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