- Indonesia’s DGT issued Regulation No. PER-19/PJ/2025, allowing systematic deactivation of e-invoicing (e-Faktur) access for non-compliant taxpayers.
- Non-compliance includes failure to withhold/collect taxes, submit annual or VAT returns, report withholding slips, or having significant outstanding tax liabilities.
- Deactivation suspends the ability to issue valid tax invoices, halting VAT-able transactions and exposing taxpayers to financial penalties.
- Taxpayers can submit clarifications to reactivate access, but the process is subjective and the burden of proof is on the taxpayer.
- The regulation marks a shift to real-time, data-driven compliance and took effect on October 22, 2025.
Source: internationaltaxreview.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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