Indonesia VAT returns

VAT registered businesses must submit VAT returns each month. These include listings of all taxable supplies and purchases. The deadline for submission, including any VAT due, is the end of the following month. Returns are submitted electronically via specially certified agents. Taxpayers with less than 25 transactions per month, or monthly liabilities of less than IDR 400m, may submit paper-based returns.

Late returns and payments may attract daily fines of 2% of the VAT due, plus a fine of IDR 500,000. Criminal liabilities apply in the case of serious fraudulent activates.

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.