Indonesia Strengthens E-Invoicing Framework with Coretax Rollout
Indonesia launches the Coretax e-invoicing and VAT reporting system, enforcing full digital clearance by end-2025 to enhance transparency and compliance.
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.
