VAT must be accounted for to the DGT every month. Input tax for a particular tax period (month), in principle, must be claimed as a tax credit against the output VAT for the same tax period. However, the claim can still be made within three months of the end of the particular tax period if the input tax has not yet been expensed or if a tax audit has not yet been started.
The validity of particular tax invoices is a key to successfully claiming the input tax as a tax credit. A tax invoice must contain the following minimum information:
a.the name, address and NPWP of the taxpayer delivering the taxable goods or services;
b.the name, address and NPWP of the purchaser;
c.the type of goods or services, the quantity, the sales price or compensation and any discounts;
d. the VAT that has been collected;
e. the LST collected (if any) on luxury goods;
f. the code, serial number and date of issue of the invoice; and
g. the name and signature of the authorised signatory to the invoice.
Failure to satisfy the minimum information requirement will mean that the input tax cannot be used as a tax credit. PKPs are required to prepare its tax invoice in electronic format (electronic Faktur Pajak/e-FP).
A tax invoice must be issued at:
a.the time of delivery of taxable goods or services;
b.the time a payment is received if the payment is received prior to the delivery of taxable goods or services;
c.the time a term-payment is received in the case of delivery of a part of the work phase; or
d.such other time as maybe stipulated by an MoF regulation.