Document background
The Commercial Invoice Tax Invoice is a fundamental document in Indonesian business transactions, required whenever a VAT-registered business conducts a taxable transaction. This document, also known as Faktur Pajak, must comply with strict regulations set by the Indonesian Directorate General of Taxes, including specific formatting requirements and mandatory content elements. It serves multiple purposes: documenting the commercial transaction, enabling VAT reporting and claims, and providing an audit trail for tax authorities. The document must be generated through the government's electronic system (e-Faktur) and includes specific elements such as a unique tax invoice number, detailed transaction information, and VAT calculations. Recent regulations require this document to be issued in electronic format, though physical copies may be maintained for record-keeping purposes.
