e-Invoicing in Indonesia
Electronic tax invoices (e-Faktur) are mandatory for all VAT-registered businesses (Pengusaha Kena Pajak – PKP) in Indonesia. Following a phased rollout that started in 2015, the e-Faktur system has been implemented nationwide and is now the standard method for issuing VAT invoices.
What is the e-Faktur system?
e-Faktur is Indonesia’s official electronic VAT invoicing system administered by the Directorate General of Taxes (DGT).
The system was introduced to reduce VAT fraud, improve invoice authenticity, standardize VAT reporting, and strengthen tax compliance through electronic validation of VAT invoices.
How does e-Invoicing in Indonesia work?
Electronic invoicing does not change the underlying VAT rules. Instead, it digitalizes the process of issuing, validating, and reporting VAT invoices.
After generating an electronic invoice, taxpayers submit invoice data through the official e-Faktur platform.
Following successful validation, the Directorate General of Taxes (DGT) approves the invoice electronically and assigns the required validation information in accordance with the applicable e-Faktur technical specifications.
Taxpayers must authenticate themselves using the electronic certificate issued by the Directorate General of Taxes (DGT) before invoices can be submitted.
Key requirements include:
- All PKPs must register for the e-Faktur system.
- Electronic VAT invoices must be generated using the official e-Faktur platform.
- Electronic certificates issued by the DGT must be used for authentication.
- VAT invoices that are not issued in accordance with the e-Faktur regulations are not considered valid VAT invoices.
- Input VAT can only be claimed based on valid electronic tax invoices that comply with the applicable regulations.
How can SNI help you?
SNI provides an end-to-end Indonesia e-Faktur solution that enables businesses to comply with the requirements established by the Directorate General of Taxes (DGT).
Our solution supports the complete invoice lifecycle, including invoice creation, data extraction, mapping, XML generation where applicable, validation, transmission, monitoring, reconciliation, and long-term archiving.
SNI automatically extracts invoice data from ERP systems and prepares electronic tax invoices in accordance with the latest Indonesian e-Faktur technical specifications.
For outbound invoices, SNI securely transmits invoice data to the official e-Faktur platform, monitors validation responses, and manages invoice processing through a centralized Cockpit.
For inbound invoices, SNI supports the automated retrieval and processing of electronic VAT invoice information, enabling seamless integration with ERP systems and downstream financial processes.
All inbound invoices are displayed in SNI’s Inbound Cockpit, providing centralized monitoring, invoice status tracking, structured invoice visualization, and human-readable HTML/PDF rendering.
SNI’s invoice reconciliation functionality automatically matches incoming invoices with purchase orders, delivery notes, or other ERP documents, reducing manual effort while improving processing accuracy and accelerating invoice approval workflows.
SNI solution integrates with clients’ systems without the need for updates to existing system versions and is independent of SAP versions. The solution supports SAP ECC 4.7 and higher, SAP ERP, SAP S/4HANA, and SAP Business Technology Platform (SAP BTP) while remaining fully ERP-independent for organizations using other enterprise systems.
With continuous monitoring of regulatory developments published by the Directorate General of Taxes (DGT), SNI enables organizations to maintain long-term compliance while minimizing implementation effort and operational risk.