Indonesia’s e-Faktur System: Revolutionizing Electronic Tax Invoicing

• Indonesia’s e-Faktur system is a significant update to the country’s tax and billing processes
• Managed by the Directorate General of Taxes, e-Faktur aims to increase transparency, efficiency, and compliance in tax reporting
• The Core Tax System was announced in July 2024 to automate tax services, allowing for independent access and automated tax form completion
• e-Faktur is an electronic invoicing system for VAT declaration applicable to all VAT-Registered Persons in Indonesia
• Taxpayers issue digital invoices that integrate directly into the tax reporting system, ensuring accurate VAT tracking and reporting
• The e-Faktur application is used to generate electronic tax invoices or VAT payment receipts
• The implementation of e-Faktur began in 2015 and became mandatory for high-revenue businesses, expanding to include all qualifying taxpayers by 2020
• Updates to the system post-2021 focus on enhancing user experience and security
• Electronic invoices are issued for taxable services, delivery of taxable goods, advance payments for taxable items, and payments or deliveries linked to project milestones
• The CTC model ensures efficient and accurate VAT invoice issuance and validation
• Taxpayers must register with the Tax Directorate and use the e-Faktur application to generate invoices, which are validated by assigned Fiscal Invoice Serial Numbers

Source: edicomgroup.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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