The timing of when VAT becomes due in Indonesia is known as the tax point. This is generally the earlier of the following for goods:

• Date of the invoice; or
• Payment by the customer for the supply.

For services, it is the date the invoice is raised, including for continuous supplies. Deposits paid ahead of the supply do not trigger a VAT liability. Import VAT is due at the time of clearing the goods through customs.

VAT invoices must contain the following information:

• Unique VAT invoice number, which is granted in advance from the Directorate General of Taxation
• Name, taxpayer’s TIN and address
• Name and address of the customer, and their TIN
• Date of the invoice
• Clear description of the taxable supplies, including quantities, unit prices etc
• Net, VAT and gross amounts
• Foreign currency invoices should include rates used based on Ministry of Finance published rates

Failure to issue an invoice compliant with the above requirements may result in a daily fine of 2% of the VAT due. Invoices must be retained for at least ten years.