In order to help the tax authorities to enhance control over the legitimacy of VAT invoices a new value added tax (VAT) process has been introduced in Indonesia. The new provision which is effective from 1st April 2013, ensures that any VAT applicable (VAT-able) company will need a pre-approved “code and serial number,” and “activation code and password,” before submitting VAT invoices.
In order to acquire these specified codes, the VAT-able company will have to submit a form for obtaining the “code and serial number” and another form for obtaining the “activation code and password”. The serial numbers would be unique for each VAT invoice, i.e. these numbers cannot be “re-used” (VAT invoices which have the identical serial number would be considered invalid).
