Output tax invoices are among the most important documents in tax administration for Taxable Entrepreneurs (PKP). They are not just proof of transactions but also a key component in reporting and paying Value Added Tax (VAT). This article will thoroughly explain what output tax invoices are, how they are issued, and why accurate reporting is crucial to avoid tax penalties.
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What is an Output Tax Invoice?
An output tax invoice is issued by a PKP when selling or delivering Taxable Goods (BKP) or Taxable Services (JKP) to a buyer. This document serves as proof that the PKP has collected VAT from the buyer.
This invoice must be issued for every VAT-applicable transaction and forms the basis for monthly VAT return (SPT Masa PPN). Issuance must follow the rules of the Directorate General of Taxes (DJP), particularly regarding the invoice serial number and timing of issuance.
When Should Output Tax Invoices Be Issued?
According to DJP regulations, invoices must be issued:
- At the time of delivery of BKP/JKP
- Upon receiving payment, if payment is made before delivery
- Upon receiving project installments in long-term contracts
Invoices must be issued no later than the end of the following month after delivery.
Mandatory Components of a Tax Invoice
A valid invoice must include:
- Seller and buyer identities (Tax ID/NPWP, name, address)
- Official invoice serial number (NSFP) from DJP
- Type of goods/services sold
- Selling price, tax base, and VAT amount
- Issue date and electronic signature
Omission of any of these elements may render the invoice invalid.
How to Issue Output Tax Invoices
Since the implementation of e-Faktur, all tax invoices must be issued through the DJP’s e-Faktur application, including the latest e-Faktur 3.0 version. The process includes:
- Log in to the e-Faktur application
- Input the BKP/JKP transaction data
- Generate the invoice with an official NSFP
- Sign the invoice electronically
- Upload the invoice to DJP Online for approval
Afterward, the invoice is automatically recorded in the current month’s VAT return.
Common Mistakes & Their Consequences
Some frequent errors include:
- Issuing invoices after the deadline
- Using the wrong NSFP
- Incomplete buyer information
- Failure to include the tax object code
These can result in the invoice being rejected by the DJP system or being non-creditable for the buyer. The consequences may include administrative penalties or time-consuming and costly VAT return corrections.
How Tax Consulting Services Can Help
Managing tax invoices accurately and on time can be a major challenge, especially for SMEs and growing corporations. This is where digital tax consulting services become essential.
We offer services that help you:
- Ensure invoice issuance complies with the latest DJP regulations
- Validate data and NSFPs in real-time
- Automate e-Faktur 3.0 issuance
- Stress-free monthly VAT reporting
- Strategic consulting for tax efficiency
With an integrated system and support from certified consultants, we help you stay focused on running your business—without worrying about tax issues.
Read Also: How to Report Your Annual Personal Tax Return Easily
Handling output tax invoices should never be done carelessly. Even a small mistake can have a big impact on your business. Don’t take that risk.
Use our digital tax consulting services to ensure everything runs smoothly, safely, and in compliance with regulations. Contact us today for a free consultation and a demo of our automated e-Faktur system.
If you need assistance with tax matters, you can rely on vOffice’s tax consultancy services. Our team can assist you with all your tax needs, including:
- Accounting services, financial report creation, and tax reporting
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FAQ: Frequently Asked Questions
Who is required to issue output tax invoices?
Taxable Entrepreneurs (PKP) who deliver BKP or JKP.
What are the penalties for not issuing invoices on time?
Administrative sanctions such as fines or penalties according to the Tax Law (UU KUP).
Do all invoices have to be created using e-Faktur?
Yes. Since the implementation of e-Faktur, all invoices must be issued through the DJP system.
How can I obtain an NSFP?
Through DJP Online by logging in as a PKP and submitting a request for an NSFP.
Can an invoice be canceled?
Yes, through the cancellation procedure in the e-Faktur system, and it must be recorded in the revised VAT return.
