As from 1 July 2016 and in addition to e-billing for taxpayers, the e-Invoice will be implemented simultaneously for ALL taxable enterprises in the country. With the application of e-invoicing in application, invoice counterfeiting efforts can be avoided since the serial number of a tax invoice will go through rigorous validation stages.

Companies need to perform several steps before they can use e-invoicing. The first step is installing application provided by the Directorate General of Taxes. This software application is connected to the Indonesian e-SPT program. This application is also equipped with a manual book, which explains how the tool can be set up and executed. Once the set-up is completed and the Local Tax Office is notified, the enterprise receives an Electronic Certificate.

Since July 2015, the Directorate General of Taxes have been mandating enterprises in the Java and Bali region to use e-invoicing. In addition, it has since then also pointed out to all buyers of goods and services who receive tax invoices, to ensure that the received tax invoice received is an e-invoice (or and e-bill, from the consumer’s perspective).

By implementing e-invoicing, the Indonesian tax revenue is expected to reduce the possibility of fictitious invoices. Moreover, refunds are expected to decrease and VAT revenues will increase.