Indonesia’s Coretax System: Full E-Invoicing Enforcement by Dec 31
Indonesia’s Directorate General of Taxes (DJP) is entering the final lap of its digital transformation. Following the initial rollout in early 2025, the authorities have confirmed that the Coretax system will become fully enforceable for nearly all VAT-registered taxpayers (PKP) by December 31, 2025.
This centralized platform replaces the legacy e-Faktur framework, introducing a mandatory "clearance" model where invoices must be validated in real-time before being issued to buyers.
Key Compliance Requirements
- Universal Scope: The mandate covers domestic B2B and B2G transactions, as well as export invoices and rectification documents (credit/debit notes).
- Clearance Workflow: All invoices must be generated in the specific local XML format and uploaded to Coretax. The system validates the data and assigns a QR code and Tax Invoice Serial Number (NSFP), without which the invoice is invalid for VAT deductions.
- Strict Deadlines: The invoice must successfully receive clearance/validation from Coretax by this deadline.
- High-Volume Exception: While most businesses must use the web portal, high-volume taxpayers retain the ability to use Host-to-Host (H2H) or Desktop client channels—a critical allowance for enterprise-level operations.
Operational Outlook
For multinational enterprises operating in Indonesia, the Host-to-Host channel is the only viable path to manage high transaction volumes efficiently. However, connecting to the new Coretax H2H interface requires significant technical adjustments to match the new XML schemas and clearance protocols. Given these high technical barriers, forward-looking organizations should rely on an experienced third-party provider to ensure their infrastructure is ready for the deadline.
There’s more you should know about e-invoicing in Indonesia – learn more about the new and upcoming regulations.
