Govt Disseminates VAT Refund Program

Jakarta, infoPublik—Directorate General of Taxes continued its effort to disseminate its value added tax (VAT) refund program for international tourists to a number of retail businesses. The dissemination was part of the series of the VAT refund dissemination programs which have been implemented since 23 September 2019 in Bali, and to be concluded in Yogyakarta on 30 September 2019.

Taxation Directorate General spokesman Hestu Yoga Saksama explained that the dissemination was conducted following the amendment to the requirements of the VAT refund program.

“In the new scheme, which will be effective on 1 October 2019, international tourists can collect receipts of purchased goods with a minimum value of Rp500 thousand per receipt (can be on different dates) from various shops, after the transaction amount has reached Rp5 million, they can claim a VAT refund,” said Hestu, on a press statement received in Jakarta, Saturday (28/9).

Hestu explained that VAT return can be claimed at the counters located near check-in counters in selected airports by presenting passports, boarding passes, and receipts issued by merchants participating in the scheme. VAT return points are located at Soekarno-Hatta International Airport in Cengkareng, Banten; Ngurah Rai International Airport in Kuta, Bali; Adisucipto International Airport in Yogyakarta; Juanda International Airport in Surabaya, East Java and Kualanamu International Airport in Medan, North Sumatra.

“With the implementation of the new scheme, the government expects to boost tourism sector and increase economic activities in retail sector,” said Hestu.

According to him, the government also expects the relaxed requirement for international tourists to claim a value added tax (VAT) refund for goods purchased in Indonesia, can encourage small and medium enterprises to join the tax refund program.

Currently, 55 retail business actors have joined the tax refund program with more than 600 merchants spread across the country. Data until August 2019 showed that 4,000 VAT refunds claims have been made with a value of more than Rp7.8 billion. The amount of claim in 2018 reached Rp11,2 billion, with an indication of purchase value at Rp112 billion. (Reporter: Isma, Translator: Penni Patmawati Rusman)