Invoice Form

An invoice is a document that the seller sends to the client to seek payment for goods or services. It is similar to a bill in that it states what items or services were supplied, how much they cost, and which payment methods the supplier accepts. Invoices are often provided to customers after they have received their products or services but prior to payment. As a result, they’re especially frequent among businesses that sell in bulk, such as manufacturers or wholesalers, and among freelancers who supply services rather than commodities, such as writers or graphic designers. Invoices, on the other hand, may be used by any firm, regardless of what they offer, when they need to bill clients after the transaction.

Writing an invoice is actually rather straightforward, but there are a few key aspects that must be included with each and every invoice. One of the most significant distinctions between an invoice and a receipt is that invoices often contain more information about the transaction and its conditions than receipts. These are some examples:

Invoices are traditionally printed and mailed or faxed to customers, although they can also be provided electronically. Because practically all of your business is currently done online, electronic invoices (also known as e-invoices) are almost undoubtedly the best solution for e-commerce enterprises. For both e-commerce and conventional enterprises, a good online invoice management software may simplify and accelerate the whole invoicing process. You must pay special attention to your invoices, whether they are paper or electronic, because they guarantee that you get paid promptly and accurately for your services.

An invoice can be created after a supply of goods or service is made or an advance for delivery of goods or service is received. In the case of continuing provision of goods or services, an invoice may be raised during a predetermined time frame following the completion of a milestone or as agreed upon. It is best to create an invoice as soon as possible to ensure that the consumer pays on time. However, it is critical to recognize that when an invoice is generated, a tax liability is also generated. As a result, invoices should only be created for products or services for which payment is expected or has already been made.

In Indonesia, taxpayers who have annual sales exceeding IDR 4.7 billion are required to issue invoices electronically. These invoices must be submitted through the e-Faktur system. The issuer must obtain an electronic certificate to sign invoices and obtain invoice serial numbers as part of the required administrative transactions. The details are then transmitted to the Indonesian Tax Authority for a unique invoice code. This process ensures that all transactions are accurately recorded and compliant with Indonesian tax laws.

In Indonesia, Value Added Tax (VAT) is imposed on most goods and services within the country. The standard VAT rate is currently 11%. However, the government has the authority to change the VAT rate within the range of 5% to 15%. VAT on export of goods is zero-rated, while the import of goods is subject to VAT at the same rate as local goods and services. Certain services are also subject to a 0% VAT rate. It’s important to note that starting from January 1, 2025, the VAT rate will become 12%. The VAT tariff may be increased to no more than 15%. In addition to VAT, Sales Tax on Luxury Goods at the rate of 10% to 200% may be imposed on certain luxury goods that are manufactured in or imported into Indonesia.