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Indonesia has implemented mandatory e-invoicing as part of its digital tax modernization strategy. The government requires businesses to issue electronic invoices for VAT transactions, integrating them with the national tax authority for real-time validation.
Indonesia’s e-invoicing system, known as e-Faktur, has improved tax compliance, reduced fraud, and streamlined financial transactions. Businesses must generate and validate invoices through the government’s platform before they are legally recognized.
Regulatory authority
The Directorate General of Taxes (DJP) manages Indonesia’s e-invoicing system and ensures compliance.
E-invoicing requirements
All VAT-registered businesses must issue electronic invoices. The system applies to both B2B and B2G transactions, requiring real-time submission for tax validation.
Accepted invoice formats
Invoices must be issued in XML format, following the e-Faktur standard.
Transmission channels
Invoices must be submitted through the e-Faktur platform before being sent to recipients.
Digital signatures
Digital signatures are required for invoice authentication and fraud prevention.
Archiving requirements
Invoices must be archived for ten years to comply with Indonesian tax laws.
How B2B e-invoicing works in Indonesia
Businesses generate invoices in XML format, submit them through e-Faktur for validation, and then issue them to customers.
How B2G e-invoicing works in Indonesia
Government suppliers must submit invoices through the e-Faktur platform to ensure compliance with procurement regulations.
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