invoicing procedures and requirements for project …

INVOICING PROCEDURES AND REQUIREMENTS FOR PROJECT VENDOR

1. Invoice / Billing Document a. Invoice / billing document consistent with Purchase Order (PO)/Surat Perjanjian Kerja

(SPK)/Letter of Acceptance (LOA): • Name, address, and tax ID number must consistent with the data stated in PO/ Surat

Perjanjian Kerja (SPK)/Letter of Acceptance (LOA). • Invoice number must be stated. • Invoice number should only be used once (if our system found any duplication of invoice

number, the invoice will be rejected). • Bank account detail should be stated in the invoice.

If it is not stated, then a bank account statement letter with stamp duty signed by the authorized person and stamped with the vendor’s stamp is mandatory.

• Stamp duty usage (only applicable for local vendor): Rp. 0 – Rp. 5.000.000 (not required to use stamp duty)

Above Rp. 5.000.001 (required to use Rp. 10.000 stamp duty) Refer to related government regulation as follows: https://pajak.go.id/id/undang-undang-republik-indonesia-nomor-10-tahun-2020

For the e-stamp duty usage, vendor should attach the request letter to tax authority for using it.

• Electronic signature or wet signature and vendor’s stamp are required in the invoice. With exception if already using e-Invoice then wet signature and vendor stamp are not required.

• Purchase Order (PO)/Surat Perjanjian Kerja (SPK)/Letter of Acceptance (LOA) should be stated in the invoice, whereas 1 (one) invoice only consist of 1 (one) PO/SPK/LOA.

• The invoice date should consistent with the date of goods or service delivery. For invoice submitted to bill several combined goods deliveries, the invoice date listed must be the latest delivery date on the same month.

• The invoice value should be detailed between the tax base and the value added tax amount.

• For invoice related to goods and service, it is mandatory for Vendor to split the respective tax base value of goods and service.

• If there is a down payment in the respective invoice, then it is mandatory to insert information on the total transaction value and the down payment submitted (Attachment -1 Down Payment Invoice)

• If there is retention, retention invoice must be made seperately according to the invoice progress, by means of calculations according to the example attached (Attachment -2 Retention Calculation)

• Invoice must be printed clearly and cannot be hand-written nor corrected by hand. • The details of the goods/services name, parts number and quantity unit of measure (UoM)

stated in the invoice should be same with the details stated in PO. If the details are not the same, then vendor should attach a statement letter explaining for the discrepancy which should be acknowledged by our Procurement.

b. Electronic Tax Invoice / Tax Invoice (only applicable for vendor as resident of Republic of

Indonesia and VAT enterprise) • Send out 2 copies of tax invoices (electronic tax invoices) which have QR code / barcode. • If there is a replacement of tax invoice, then it is compulsory to provide the initial tax

invoice and latest replacement tax invoice during billing (2 copies). • The tax invoice date should be the same as the invoice date. • Every 1 (One) tax invoice issued should be for 1 (one) invoice.

https://pajak.go.id/id/undang-undang-republik-indonesia-nomor-10-tahun-2020

• For down payment transaction, the tax invoice date should be the date of goods being delivered as stated in delivery order or payment received, whichever comes first.

• Vendor’s name, address, and tax ID number must consistent with VAT Entrepreneur Confirmation Letter.

• Name listed in the Tax invoice must correspond with the given specimen reported to Tax office.

• Tax invoice issued date must not exceed the grace period determined by the applicable tax regulation since the date of goods / service being delivered. If tax invoice issued date is exceeding the grace period, then tax invoice cannot be creditable, hence VAT will not be paid. Vendor needs to submit a statement letter with stamp duty that vendor is willing to be paid only for tax base value without VAT.

• Tax invoice submission date must not exceed the grace period determined by the applicable tax regulation. If tax invoice submission date is exceeding the grace period, then tax invoice cannot be creditable, hence VAT will not be paid. Vendor needs to submit a statement letter with stamp duty that vendor is willing to be paid only for tax base value without VAT.

c. Documents related to Tax Invoice Regulation (PER 24) (only applicable for vendor as resident of Republic of Indonesia) Attach the following documents if there are any changes in the documents submitted before:

• Tax Invoice Signature specimen. • Proof or letter retrieval from Tax Office over the Tax Invoice signature specimen. • VAT Entrepreneur Confirmation Letter (SPPKP) • Tax ID Number • Tax Registered Certificate

d. Certificate of Domicile of Non Resident for Indonesia Withholding Tax (DGT Form page 1 & 2)

should be attached for all services’ invoice. • Page 1 and 2 of the DGT Form is valid for a year. The page 1 and page 2 of the DGT Form

attached on the first time should be the original one. For the next transaction, the form could be submitted in the form of the copy. Form DGT must be filled in completely and correctly.

• DGT Form on the part II of page 1 should be signed and stamped by the proficient tax authority from the country of origin (exception made if there is an official certificate of resident from the tax authority from the country of origin and should be valid for the maximum of 1 year).

• DGT Form on the part VII of page 2 should be signed by vendor’s authorized and competent representative.

• Exception can be made for vendors who owned a valid e-SKD (electric domicile certificate). • Refer to https://www.pajak.go.id/sites/default/files/2019-03/PER25PJ2018.pdf for details.

e. Purchase Order (PO)/Surat Perjanjian Kerja (SPK)/Letter of Acceptance (LOA)

• Copy of Purchase Order/ Surat Perjanjian Kerja (SPK)/Letter of Acceptance (LOA) which has been signed by SMART Group Sinarmas Agribusiness and Food should be attached (exception for all e-PO)

f. Goods Delivery Document • Attach original Delivery Order signed by both sender and receiver (represented by Project

Site Manager), which should be stamped and state the complete names. • Recap of delivery order (if delivery order is more than 1 (one)) in accordance with the

attached format (Attachment -3 Delivery Order Recapitulation) should be attached, specifically for shipping via land.

https://www.pajak.go.id/sites/default/files/2019-03/PER25PJ2018

g. Service Completion Document • BAPP (Berita Acara Progress Pekerjaan) / BAST (Berita Acara Serah Terima), which

contains: Job description Achievement of work progress and nominal value must correspond to the value listed

in the invoice and tax invoice in the respective invoicing period. Signed and stamped by PIC of service renderer (Vendor) and PIC of service recipient

(SMART Group Sinarmas Agribusiness and Food, represented by Project Site Manager or Project Integrated Manager, especially for project head office), complete with the respective names.

Must be attached with work progress details for each respective work type. IKDL attachment that has been agreed (if any).

h. Statement Letter for Bank Account Changes

• If there is any change for the previously registered bank account, then vendor is mandatory to attach the Statement Letter of Account Changes with stamp duty signed by the authorized person and stamped with the vendor’s stamp (Attachment-4 Bank Account Statement Letter).

• Name listed in the bank account needs to be aligned with the name listed in PO

i. Penalty Agreement Form In regards to a penalty clause exists in PO for late goods delivery, if the goods received by SMART Group Sinarmas Agribusiness and Food has passed the delivery date agreed, then vendor should attach penalty agreement form signed by both parties.

j. Other supporting documents considered necessary by vendors (if any) or in accordance with the agreement or contract such as:

• Original bank guarantee • Addendum period

2. If there is any discrepancy(s) found between the vendor data listed in PO and legal/ licensing

documents, or if there is any data change(s) related to taxation, then vendors must inform the updated data (including its supporting documents) through the respective Procurement PIC. Legal/licensing and/or taxation documents should be attached if there is any change(s) are as follows: • For contractor vendor that does not have Construction Business Permit Services is mandatory

to provide statement letter with stamp duty signed by the authorized person and stamped with the vendor’s stamp mentioned that the vendor is not as contractor.

• If Construction Business Permit Services is expired or in renewal process or in process of changing the type of classification at the time the invoice is received, it will be subject to witholding tax rate in accordance with applicable tax regulation.

3. Invoice Status Notification System will automatically send invoice status notification (Accepted/ In-progress/ Rejected) to vendors via e-mail that is registered to our system. If vendor has no e-mail address or the e-mail registered is not valid, then the automatic notification through e-mail will not be sent. Therefore, it is compulsory for vendors to own an e-mail address and inform the e-mail address to the respective Procurement PIC, including its changes. In the case of rejected vendor invoice, vendor must retrieve the submitted documents back in 5 working days at the latest post rejected status is informed to the respective vendor. We are not responsible for the loss of document if it was not retrieved within the predetermined period of time. The rejected document retrieval can be done at the address listed in point No. 5 below. And revised

document must re-submitted in 10 working days with regard to follow the procedure of tax invoice submission date as explained in point No. 1.b above.

4. Payment due date is calculated based on the date when all documents have been received and completely and correctly based on the notification sent by the system.

5. Time and location of billing document delivery and rejected documents retrieval: Day: Monday to Friday (closed on National Holiday) Time: 08.30 am to 11.30 am (Western Indonesia Time) Address:

Sinarmas Agribusiness and Food (PT Sinarmas Sentra Cipta) UP. ODS counter A – Upstream or counter B – Downstream Sinarmas MSIG Tower Floor 26th Jl. Jend. Sudirman Kav 21, Setiabudi, RT.10/RW.1, Karet, Jakarta Selatan, DKI Jakarta, 12930 Phone : +62 (021) 50156000 Or Upstream Vendor can submit invoice also to: Smart Group Sinarmas Agribusiness and Food PROJECT MANAGEMENT OFFICE (PMO) Sinarmas Land Plaza Tower 2 floor 34th Jl. MH. Thamrin No. 51 Kav 22 Jakarta Pusat, 10350 Phone : +62 (021) 50338899

Smart Group Sinarmas Agribusiness and Food INFRASTRUCTURE/IFDV Gedung ITC Mangga Dua floor 9th Jl. Mangga Dua Raya Jakarta Utara, 14430 Phone : +62 (021) 6008870

Upstream Local Vendor can submit invoice to Representative Office in each area (Attachment-5 Upstream Representative Office).

6. Communication channel between SMART Group Sinarmas Agribusiness and Food and Vendors:

• Vendors may inquire regarding the payment status that has not been received but has been overdue via e-mail below: [email protected]

• We will response your e-mail within three working days at the latest.

To help and ease our internal document checking, we have attached a checklist as a guide to ensure document completeness before the documents are sent to us. (Attachment-6 Checklist)

Should there be any follow up inquiry regarding this letter, please contact the respective Procurement PIC.

We are thankful for your cooperation and we will try to improve our service quality to Vendor.

Attachment-1 Down Payment Invoice

mailto:[email protected]

Example Invoice Project – Down Payment

Attachment-2 Retention Calculation

ABC KontraktorJl Sudirman no 01Jakarta Barat Billing No 024/INV/VI/2020

Invoice Date 1-Jun-20To: Due Date 1-Jul-20PT. Sinar Mas Agro Resources And Technology Tbk Reference No. PO 7200006700Sinar Mas Land Plaza Menara 2 Lt. 28-30Jl. MH. Thamrin No.51 , Gondangdia Menteng Jakarta Pusat , DKI Jakarta 10350

Description Price (Rp) Amount (Rp)

Mechanical installation (down payment 20%) 200,000 200,000

Total 200,000VAT 10% 20,000

Witholding Tax 2% 4,000Grand Total 216,000

Amount : Two hundreds and sixteen thousands rupiah

Remarks : Invoice for down payment 20%

Jakarta, 01-Jun-20

Please transfer to:Bank BNI 46 JPU Jakarta PusatPT ABC KontraktorNo A/C : 0020208802

Andi D.ABC Kontraktor

FAKTUR(BILLING)

Retention Calculation

1,000,000 Down Payment 20% 200,000 Retention 10% 100,000

DP Retention VAT WHT20% 10% 10% 2%

Invoice Progress 1 30% 300,000 60,000 240,000 30,000 210,000 24,000 4,800 229,200 Invoice Progress 2 40% 400,000 80,000 320,000 40,000 280,000 32,000 6,400 305,600 Invoice Progress 3 30% 300,000 60,000 240,000 30,000 210,000 24,000 4,800 229,200

200,000 800,000 100,000 700,000 80,000 16,000 764,000

DP Retention VAT WHT20% 10% 10% 2%

Invoice Progress 1 30% 272,222 60,000 212,222 - 212,222 21,222 4,244 229,199 Invoice Retention 27,778 - - 27,778 2,778 556 30,000

300,000 60,000 240,000 - 240,000 24,000 4,800 259,200


400,000 80,000 320,000 - 320,000 32,000 6,400 345,600


300,000 60,000 240,000 - 240,000 24,000 4,800 259,200

1,000,000 200,000 800,000 - 800,000 80,000 16,001 863,999

Invoice Retention Calculation :RETENTION AMOUNT x 100.00

1.1 98.18

Invoice Progress Calculation:NILAI PROGRESS - DP (%) - NILAI RETENSI

Example :Progress 30% Rp. 300,000 DP 20% Rp. 60,000 Total Rp. 240,000 Retention 10% Rp. 30,000

Invoice Retention:30,000.00 x 100.00 = 27,778

1.10 98.18

Invoice Progress :300.000 - 60.000 - 27.778 = 212,222

Project Amount

To Be Gross Amount

(Invoice) Total Amount

(Invoice)

As Is Gross Amount

(Invoice) Total Amount

(Invoice)

Progress Invoice for Project Vendor

ABC KontraktorJl Sudirman no 01Jakarta Barat Billing No 007/INV/VII/2020

Invoice Date 1-Jul-20Kepada Yth : Due Date 31-Jul-20PT. Sinar Mas Agro Resources And Technology Tbk Reference No. PO 7200006700Sinar Mas Land Plaza Menara 2 Lt. 28-30Jl. MH. Thamrin No.51 , Gondangdia Menteng Jakarta Pusat , DKI Jakarta 10350


Mechanical installation (30%) 272,222 272,222

Total 272,222Down Payment 60,000

212,222VAT 10% 21,222

Witholding Tax 2% 4,244Grand Total 229,199

Amount: Two hundreds twenty nine thousands and one hundred ninety nine rupiah

Remarks : Invoice for 1st progress (30%)

Jakarta, 01-Jul-20



FAKTUR (BILLING)

Retention Invoice for Project Vendor

ABC KontraktorJl Sudirman no 01Jakarta Barat Billing No 008/INV/VII/2020

Invoice Date 1-Jul-20Kepada Yth : Due Date 31-Jul-20PT. Sinar Mas Agro Resources And Technology Tbk Reference No. PO 7200006700Sinar Mas Land Plaza Menara 2 Lt. 28-30Jl. MH. Thamrin No.51 , Gondangdia Menteng Jakarta Pusat , DKI Jakarta 10350


Mechanical installation (retention) 27,778 27,778

Total 27,778VAT 10% 2,778

Witholding Tax 2% 556Grand Total 30,000

Amount : Thirty thousands and one rupiah

Remarks : Invoice retention 19% for 1st progress (30%)

Jakarta, 01-Jul-20



FAKTUR (BILLING)

Attachment-3 Delivery Order Recapitulation

Attachment-4 Bank Account Statement Letter

BANK ACCOUNT STATEMENT LETTER

The name signed below:

Name : Position 1) : Address : Telephone : Fax : Email : Own the legal right and power required, and has obtained all rights, agreement, permit, qualification, warrant, and other needed requirements to represent: Company Name : Company Address : With this letter, state that all invoices for: Name ________________________________, will be paid to the bank account _____________ ___________________________________ with details as follow:

Beneficiary Name : Bank Name : Currency 2) : Bank Account Number : This Statement Letter is written is made truthfully and binding for name ____________________ __________________________ to be used as appropriate.

……Place…, ….Date Stamp 6000 ribu

Name

Position

1) Company Director 2) Only one currency for one bank account with the maximum of two bank accounts (two currencies)

Atttachment-5 Upstream Representative Office

Representative Office Address

Medan Jl. Monginsidi No.14 Medan, Tlp. (061) 4556566

Pekanbaru Jl. Soekarno Hatta No.19 RT01 / RW08 Kel. Sidomulyo Barat, Kec. Tampan, Pekanbaru, Riau 28294

Jambi Jl. Soekarno Hatta No.183 Jambi, Tlp. (0741) 572729

Lubuk Linggau Jl. Garuda Dempo No.42 Lubuk Linggau, Tlp. (0733) 320992

Lahat Jl. Kolonel H. Burlian Blok A-3 Kav. Bandar Jaya Kabupaten Lahat

Palembang Jl. Cendrawasih No.26 Palembang, Tlp. (0711) 352819

Lampung Jl. Pangeran Tirtayasa No. 18A Kel. Sukabumi Indah, Kec. Sukabumi Bandar Lampung, Tlp. (0721) 701828

Bangka Jl. Depati Amir No.8 Pangkal Pinang, Bangka Tlp. (0714) 434404

Belitung Jl. Air Serkuk No. 2 RT02/RW01 Tanjung Pandan, Belitung, Babel 33415, Tlp. (0719) 23767

Sampit JL. HM. Arsyad No.88 Kec. MB. Ketapang Sampit, Tlp. (0531) 22329

Banjarmasin Jl. A. Yani KM 23.700 Landasan Ulin, Banjarmasin, Tlp. (0511) 4705508

Samarinda Jl. Ring Road III No.88 Samarinda, Tlp. (0541) 251281

Ketapang Jl. Brigjen Katamso No.88 RT026/RW006 Sukaharja Delta Pawan, Ketapang

Pontianak Jl. Ks. Tubun No. 56. RT03/ RW04 Kel. Akcaya Kec. Pontianak Selatan. Kota Pontianak, Kalbar 78121

Jayapura Perum Sky Line Indah Blok D No. 28 BTN Abepura Jayapura, Tlp. 0967-581234

Attachment-6 Checklist

No. Completeness

PO NPO

Accuracy Check Items / Details Material Invoices

Service / Project Invoice

Invoice

1. Original Invoice

Yes

Yes

Yes

1. Vendor Stamp & Signature 2. Stamp Duty : ≥ IDR 250K

2. Receipt (applicable

only for notary) N/A N/A Yes

1. Vendor Stamp & Signature 2. Stamp Duty : ≥ IDR 250K

3. Tax Invoice Yes

Yes

Yes

Total amount matched with invoice amount 1. Tax invoice date must be same

with invoice date 3. Tax invoice date must be within 3 months from the delivery order date

2. Tax invoice expiry date : <3months

3. If any tax Invoice replacement (#011), the original tax invoice (#010) should be provided.

4. PAM (Payment

Approval Memo) Including supporting documents if any

N/A N/A Yes

1. Complete signatures from approval matrix

2. Complete Details : a) Total amount matched with

invoice amount, if any b) GL, Cost Center c) Beneficiary Name & Bank

Account

5. Delivery Notes Yes N/A Yes 1. Vendor Stamp & Signature 2. Recipient Signature 3. Quantity in delivery note/

summary of delivery order should be matched with quantity in invoice.

6. Packing List & Bill of Lading *only for imported materials

Yes N/A N/A

The following details should be matched in Invoice a) Company Name b) Material List c) Quantity

7. Certificate of Service Completion (BAPP/BAST)

N/A Yes Yes 1. Vendor Stamp & Signature 2. Recipient Stamp & Signature 3. Job progress rate (%) should be

the same with the invoice

No. Completeness

PO NPO

Accuracy Check Items / Details Material Invoices

Service / Project Invoice

Invoice

8. Contract (Surat Perjanjian Kerja (SPK))

Yes Yes Yes 1. Total amount should be matched with PO amount (for Downstream only)

2. Complete signatures both parties & stamp

3. For PO, contract/ SPK should be provided only for the 1st Invoice (scanning of documents is not required)

9. Form DGT

(Certificate of Domicile) * only for Overseas Vendors – providing services will be subjected to withholding tax

N/A Yes Yes 1. Validity / expiry date : within 1 year

2. Complete signature & stamp from vendor & tax Authority

10. Purchase Order Yes Yes N/A 1. Complete signature for non e-PO