How to invoice in Indonesia
A compliant Indonesian tax invoice (Faktur Pajak) can only be issued by a VAT-registered business (PKP) and must show the seller's and buyer's NPWP, a clear description of the goods or services, and PPN (VAT) at 11%. Since 2025 tax invoices must be created and cleared through the DJP's Coretax system, which returns a serial number (NSFP) and QR code that make the invoice valid for input-VAT credit. Businesses that are not registered as a PKP issue ordinary commercial invoices without PPN.
| Indonesia at a glance | Detail |
|---|---|
| Currency | IDR (IDR) |
| Standard PPN | 11% |
| Tax ID | NPWP |
| Paper size | A4 |
| Typical terms | Net 30 |
| E-invoicing | Mandatory — live |
Tax ID format: NPWP: since 2024 a 16-digit tax number (e.g. 0012345678901000). Companies previously used the 15-digit format written as XX.XXX.XXX.X-XXX.XXX, e.g. 01.234.567.8-012.000; sole traders now use their 16-digit national ID (NIK)..
What Indonesian invoices must include
- The word “Invoice” and a unique, sequential invoice number
- The issue date (and the supply date if it differs)
- Your business name, address and NPWP
- The client's name and address (and their NPWP for reverse-charge or intra-EU supplies)
- A clear description and quantity for each line
- The net amount per PPN rate, the rate(s) applied and the PPN amount
- The total payable, in IDR
- Payment terms, the due date and how to pay (bank name, IBAN/account)
- Seller and buyer NPWP
- Tax Invoice Serial Number (NSFP)
- Coretax QR code / validation status
PPN & reverse charge
For cross-border work, the right wording matters. Invoice Forever offers ready-made Indonesian PPN notes such as:
- PPN (VAT) charged at 11%.
- Export of goods or services - 0% VAT (zero-rated).
- VAT on imported services self-assessed by the recipient (reverse charge).
E-invoicing in Indonesia
E-invoicing (e-Faktur) has been mandatory for VAT-registered businesses (PKP) since its nationwide rollout in 2016. Since 1 January 2025 tax invoices are issued and cleared through the DJP's new Coretax system: invoices are submitted in XML, validated by the DJP, and returned with a serial number (NSFP) and QR code before they are valid for input-VAT credit.
Invoice Forever can export a structured EN 16931 / Peppol BIS (UBL) e-invoice alongside the PDF (beta) — the format most of these mandates are built on. You still send it via your own access point, and some countries require their own national format.
Verified 23 July 2026 against the source. E-invoicing rules are changing quickly, so always confirm the current position with the Direktorat Jenderal Pajak (DJP) via its Coretax system before you rely on it. This page is general guidance, not tax advice.
Payment terms in Indonesia
Net 30 is the common B2B norm, though many larger companies pay on 30-60 day terms. Most B2B payments are by bank transfer, so state the due date and full bank account details clearly.
Questions about invoicing in Indonesia
The standard PPN (VAT) rate is an effective 11% on most goods and services. The nominal rate is 12%, but the government applies it via an 11/12 tax-base multiplier so most supplies are taxed at 11%; a full 12% applies to luxury goods, and exports of goods and services are zero-rated (0%).
Yes. To charge VAT you must be registered as a PKP and show your NPWP, and the buyer's NPWP is also required on a valid tax invoice (Faktur Pajak). Businesses that are not PKP issue plain commercial invoices without PPN.
Yes. VAT-registered businesses must issue tax invoices electronically through the DJP's e-Faktur / Coretax system, where each invoice is validated and given a serial number (NSFP) and QR code before it is valid for VAT.
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IDR and 11% PPN already set, on A4 paper. No signup, no watermark.
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