Quick answer
Indonesia sets no fixed format for ordinary commercial invoices. Businesses registered for VAT (PKP) must also issue a tax invoice, the faktur pajak, for every taxable sale through the Coretax system. It shows the seller and buyer names, addresses, and NPWP, the goods or services, the price, the PPN, a code, serial number, date, and signature.
Required details
Include each of these on the invoice. Some apply only above a value or for certain customers.
| Detail | What to show |
|---|---|
| Seller name, address, and NPWP | The 16-digit NPWP for companies; individuals use their NIK as NPWP. |
| Buyer name, address, and NPWP or NIK | For buyers without an NPWP, the NIK or other identity data accepted by DJP. |
| Type of goods or services | A description of each item, with an optional 6-digit goods or services code from DJP. |
| Selling price and discounts | The price or replacement value, and any discount. |
| Tax base (DPP) and PPN | For most goods and services, the tax base is 11/12 of the price and PPN is 12 percent of that base. |
| PPnBM | Only for luxury goods subject to the sales tax on luxury goods. |
| Invoice code, serial number, and date | Assigned when the faktur pajak is created in Coretax. |
| Electronic signature | An electronic certificate or DJP authorization code. |
Good to know
These fields are for the faktur pajak, which only a PKP issues. A business that is not a PKP sends an ordinary invoice with its details, the client, the items, and the total, without PPN.
Tax rules
When you become a PKP
A business must register as a VAT-registered entrepreneur (PKP) once its turnover passes Rp4.8 billion in a financial year. Smaller businesses can register voluntarily, for example when their clients need a faktur pajak to claim input tax.
PPN rate
Since January 1, 2025 the PPN rate is 12 percent. For goods and services that are not luxury items, it applies to a tax base of 11/12 of the price, so the effective charge stays at 11 percent.
Electronic invoicing
Every faktur pajak is electronic. Since 2025, PKPs create them in Coretax, the DJP core tax system, or through a certified tax application provider (PJAP) connected to it. A faktur pajak you issue appears automatically as input tax in the buyer Coretax account.
Record keeping
Keep books, records, and supporting documents, including invoices and faktur pajak, for 10 years in Indonesia.
Frequently asked questions
Does a small business in Indonesia need a faktur pajak?
Only if it is a PKP. Businesses below the Rp4.8 billion turnover threshold that have not registered as PKP issue ordinary invoices without PPN.
Why does the PPN show as 11 percent if the rate is 12 percent?
For most goods and services the 12 percent rate is applied to a tax base of 11/12 of the price, which works out to 11 percent of the price. Show the tax base and the PPN separately.
Can I still use the old e-Faktur desktop app?
Most PKPs now create faktur pajak in Coretax. Use of the old desktop app has been limited, so check the latest DJP announcements on pajak.go.id.
Related terms
- VAT VAT (value added tax) is a consumption tax charged at each stage of the supply chain on the value added, used in the EU, UK, and more than 160 other countries.
- Tax ID A tax ID is the number a tax authority assigns to a business for reporting and collecting taxes.
- Tax invoice A tax invoice is an invoice that meets the legal requirements for the buyer to claim a tax credit, typically under a VAT or GST system.
- E-invoicing E-invoicing is the exchange of invoices in a structured electronic format that the recipient's system can process automatically, as opposed to a PDF or paper invoice that must be read and keyed in.
Sources
- Direktorat Jenderal Pajak: Pemungutan Pajak Pertambahan Nilai
- Direktorat Jenderal Pajak: PMK 81/2024 on Coretax
Last reviewed October 22, 2026. Spot something out of date? Let us know.
This page is general information, not legal or tax advice. Rules change and depend on your situation, so check the official sources or ask an accountant before relying on it.