Indonesia’s new Coretax system, launched in January 2025, makes e-invoicing and clearance mandatory for all VAT-registered taxpayers (PKP). Most businesses must use the Coretax portal, while only high-volume taxpayers may continue using e-Faktur Desktop or H2H. The mandate covers B2B, B2G, exports, and all adjustment documents, with paper invoices allowed only during system outages. By December 31, 2025, Coretax will be fully enforced for almost all PKP. Invoices must be submitted in XML, cleared by DJP, and issued as QR-coded PDFs with an auto-generated NSFP. Late or incorrect invoicing carries strict penalties—uploads after the 20th of the next month are not creditable, failure to issue e-invoices triggers fines, late VAT returns incur IDR 500,000 (approximately €25.75–€25.90), and misreporting can lead to penalties up to 100% of underpaid VAT.
Indonesia: Coretax E-Invoicing Mandatory for All VAT-Registered Taxpayers by End of 2025
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Author: Ljubica Blagojević
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Content accuracy validation date:
08.12.2025
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Scope of the E-Invoicing Mandate
The mandate applies to:
- All PKP, including businesses with turnover above IDR 4.8 billion
- Qualifying non-resident digital service providers
Coretax covers:
- Domestic B2B and B2G transactions
- Export transactions (zero-rated VAT)
- Credit/debit notes, replacement invoices, and cancellation notes
Paper invoices are allowed only during force majeure (e.g., system outages) and must be uploaded later.
Timeline
Indonesia’s e-invoicing began with e-Faktur (2014–2016), with upgrades in 2020 and 2024. Coretax became mandatory in January 2025, and by December 31, 2025, all PKP must fully transition—except large taxpayers still permitted to use Desktop or H2H.
Document Issuance & Distribution
- Invoices must be generated in XML and uploaded for clearance.
- Once validated, Coretax assigns a QR code and automatically generates the Tax Invoice Serial Number (NSFP).
- Cleared invoices are sent electronically as PDFs with QR codes for buyer verification.
Penalties for Non-Compliance
- Invoices uploaded after the 20th of the following month are not valid for VAT credit.
- Failure to issue an e-Faktur/Coretax invoice results in non-creditable VAT and administrative fines.
- Late VAT returns incur IDR 500,000 per return.
- Incorrect reporting or fraud may lead to penalties up to 100% of underpaid VAT and potential criminal prosecution.
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