Indonesia Strengthens E-Invoicing Framework with Coretax Rollout

The Directorate General of Taxes (DJP) in Indonesia has launched the Coretax system, a centralized platform for VAT reporting and e-invoice clearance, marking a major step toward full digitalization of tax processes.

Introduced in January 2025, Coretax modernizes the e-Faktur system and introduces new clearance, reporting, and identity verification procedures for all VAT-registered taxpayers (PKP).

Key Details

Scope:

The mandate applies to all VAT-registered businesses in Indonesia, including those with annual turnover above IDR 4.8 billion and non-resident digital service providers. It covers:

• Domestic B2B and B2G transactions
• Export transactions (zero-rated VAT)
• Rectification documents such as credit/debit notes and replacement invoices

Paper invoices are only allowed in force majeure situations, such as system outages, and must be uploaded later for clearance.

Channels

• Most businesses must use the Coretax portal.
• Large taxpayers (10,000+ invoices/month) may continue using e-Faktur Desktop or Host-to-Host (H2H) channels.

Timeline

• 2014–2016: e-Faktur introduced for PKP
• 2020 & 2024: System upgrades
• January 2025: Coretax launched
• By December 31, 2025: Full enforcement for all taxpayers, except large PKP using H2H or Desktop

Invoice Issuance:

Invoices must be created in XML format and uploaded to Coretax for clearance. Once approved, the DJP system:

• Assigns a QR code and Tax Invoice Serial Number (NSFP)
• Generates a cleared PDF invoice for electronic distribution
• Allows buyers to verify authenticity via QR code or the DJP portal

Penalties for Non-Compliance

• Invoices uploaded after the 20th of the following month are invalid for VAT credit
• Failure to issue valid Coretax invoices results in loss of VAT credit and administrative fines
• Late VAT returns: IDR 500,000 per return
• Incorrect VAT reporting or fraud: Penalties up to 100% of underpaid VAT and potential criminal charges

With Coretax, Indonesia aims to enhance transparency, automation, and compliance across its tax ecosystem.