How to make a proper invoice

Invoice, receipt and tax invoice: what's the difference?

An invoice is the document you send a customer to ask for payment for goods or services. It says what you sold, what it costs, and when it must be paid.

• Invoice: a request for payment, sent before the customer pays.
• Receipt (kuitansi): proof that money was received, made after the customer pays.
• Tax invoice (faktur pajak): the tax document a VAT-registered business (PKP) must create when it charges VAT in Indonesia, through the tax office's system. An ordinary invoice doesn't replace it.

What an invoice should include

There's no single official invoice format for every business. But an invoice that's tidy and easy for your customer to process usually has:

1. The word “Invoice”, so it's clearly a bill.
2. A unique, sequential invoice number, such as INV/2026/00042. Never use a number twice: it's how you and your customer match payments.
3. The invoice date, the day it's issued.
4. The due date, or payment terms such as “14 days from the invoice date”.
5. Your details: business or legal company name, address, email or phone, and your tax ID (NPWP in Indonesia) if you have one.
6. Your customer's details: the company or person you're billing and their address. For business customers, ask whether a PO number or other details should appear.
7. The goods or services: description, quantity, unit price and total for each line.
8. Subtotal, any discount, tax where it applies (in Indonesia, VAT only if you're VAT-registered), and the total to pay.
9. How to pay: bank name, account number and account holder, or any other payment method you accept.
10. A short note if useful, such as “Please put the invoice number in the transfer reference.”

A simple invoice example

INVOICE
Number: INV/2026/00042
Date: 2 November 2026
Due: 16 November 2026

From: CV Contoh Kreatif
Jl. Contoh No. 1, Bandung · NPWP: (if any)

To: PT Pelanggan Contoh
Jl. Contoh No. 2, Jakarta

1. Website redesign    1 × Rp8,000,000    Rp8,000,000
2. Hosting, 12 months  1 × Rp2,000,000    Rp2,000,000

Subtotal                                 Rp10,000,000
VAT (PPN) 11%                             Rp1,100,000
Total                                    Rp11,100,000

Payment: transfer to Bank Contoh, account 123-456-7890
in the name of CV Contoh Kreatif. Put INV/2026/00042 in the reference.

The names, addresses and account number above are only examples. Add VAT only if your business is VAT-registered (PKP). How to calculate it is in the VAT guide.

Tips to get paid faster

• Send the invoice as soon as the work is done or the goods ship.
• Give a clear due date, not just “as soon as possible”.
• Use descriptions your customer recognises, such as their project name or PO number.
• Send it in a form that can't easily be edited, such as a PDF or a link.
• Record every payment, partial ones too, so you know what's still owed.
• Send a polite reminder before and after the due date.

Stamp duty and taxes

Under Indonesian Law No. 10 of 2020, Rp10,000 stamp duty (bea meterai) applies to, among others, documents acknowledging receipt of more than Rp5,000,000, such as receipts. Whether your invoice needs a stamp depends on its wording and purpose, and tax rules change. Check with your accountant or tax adviser.