eFaktur

e-Faktur is an electronic invoicing system for value-added tax (VAT) in Indonesia, developed and operated by the Directorate General of Taxes (Direktorat Jenderal Pajak, DJP). It enables the creation, transmission, and storage of tax invoices (faktur pajak) in digital form, with each transaction assigned a unique invoicing code and verified by the tax authority.

The system applies to VAT-registered taxpayers (PKP) and is intended to replace traditional paper tax invoices. Its goals include improving tax compliance, reducing fraud, facilitating VAT input and output reporting, and providing verifiable invoicing data for audits and analysis.

How it works: a seller issues a tax invoice through the e-Faktur interface or integrated software. The invoice data are transmitted to DJP for validation, and a validation result is returned. The electronic invoice is stored digitally and can be accessed by the buyer for record-keeping and VAT deduction. The process is designed to ensure that invoices are traceable and conform to tax requirements.

Implementation and use: participation is tied to registration with DJP and access to the e-Faktur system, often through electronic invoicing software or ERP integrations. Taxpayers must comply with the requirement to issue and report electronic invoices and to maintain proper records in accordance with tax laws.

Impact and considerations: e-Faktur aims to enhance transparency, streamline VAT reporting, and reduce leakage. It can impose technical and administrative burdens on businesses, particularly small enterprises or those with limited IT resources, and may require ongoing system maintenance and updates.