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Tax Refund for Tourists

Now your visit to Indonesia can be more enjoyable.

The Indonesian government has provided a facility for tax refund if you purchase goods in any shop (retailer) with “VAT Refund for Tourists” logo.

Please feel free to visit any Indonesian shop (retailer) with “VAT Refund for Tourists” logo and enjoy your shopping time.

 

What is “the VAT Refund for Tourists” ?

VAT Refund for Tourists is a facility given by the Indonesian government which allows tourists (foreign passport holders) to claim back Value Added Tax (VAT) on goods purchased in any store registered as a “VAT Refund for Tourists” participant.

 

What is eligible for a VAT Refund ?

Any passport holder who is :

  • not as Indonesian citizen or not a Permanent Resident of Indonesia, who lives or stays in Indonesia no longer than 2 (two) months (calendar month) since he/she arrived in Indonesia.
  • not a member of an airline crew.

 

How to claim the VAT Refund ?

Accompanied baggage (goods)

To be eligible for VAT Refund :

  1. goods must be purchased from shop with “VAT  Refund for Tourists” label across Indonesia by showing your passport, and you must have a valid tax invoice attached with one payment receipt) from the shop.
  2. goods which are excluded are as follows :
  •  food, beverage, tobacco products;
  •  guns and any explosive goods (materials);
  •  any goods that prohibited to be taken to the aircraft;
  1. goods purchased must have a minimum amount of Rp. 500.000 (five hundred thousand rupiah) of VAT in one valid tax invoice from a shop with the same purchasing date.
  2. goods are purchased within 1 (one) month before departing Indonesia.
  3. goods must be carried out of Indonesia as accompanied baggage overseas within 1 (one) month of the date of purchase.

 

VAT Refund payment options.

VAT Refund can be given in cash or by transfer payment.

  1. Given in cash with Indonesia Rupiah (IDR) currency;

    VAT refund is given in cash only  if  the  amount  does  not exceed Rp. 5.000.000  (five million rupiah);

  1. Through transfer payment.

    When the VAT refund is in excess of Rp. 5.000.000 (five million rupiah),   the refund will be made by transfer.  The passenger should  provide   bank account number, account name,  address,  bank  routing number, designated bank for transfer and requested currency for  the VAT Refund. The  transfer will be done within 1 (one) month of receipt of application for VAT refund.

 

Exceptional circumstances

If the amount of VAT refund is more than Rp. 5.000.000 (five million rupiah), however, the passenger doesn’t want to be refunded by transfer, than the amount of Rp. 5.000.000 (five million rupiah) will be refunded in cash and the balance of VAT is not refundable.

 

Claim procedure

The VAT refund can only be claimed at the airport on the date of your departure and you must follow the steps:

Option # 1 : Claim VAT Refund before Check-In counter

  1. Submit the application for VAT Refund to the Directorate General of Taxes (DGT) officer at the airport;
  2. Submit both copies of the original valid tax invoice (a tax invoice attached with one payment receipt);
  3. Show passport, airline ticket and goods purchased;
  4. Receive VAT refund in cash or through transfer to your bank account

Option # 2 : Claim VAT Refund after Check-In counter

The same steps are applied for this option, however, instead of showing airline ticket you need to show your international boarding pass to DGT officer.

This option is applied for passenger who carries on his/her purchased goods as hand baggage. If the goods are oversized or aviation security measures prevent you from taking your goods on board the aircraft, then you have to claim your VAT Refund at VAT Refund counter before Check-In counter as started on option # 1.

 

 

Where are the VAT Refund counters located ?

VAT Refund counters are located before and after check-in counter in selected Indonesian international airport.

Currently VAT Refund counters are available at Soekarno Hatta Airport – Jakarta, Ngurah Rai Airport – Bali, Adisutjipto Airport – Yogyakarta, Juanda Airport – Surabaya, and Polonia Airport – Medan

(Juanda’counters and Polonia’s counters are available since September 1st, 2011)

 

Frequently Asked Questions

  1. Can I reply for VAT Refund from any retailer in Indonesia ?

    No, you can only apply for VAT Refund from retailer with “VAT Refund of Tourists” logo on it.

  1. What if I stay for more than 2(two) months in Indonesia ? Am I eligible for the VAT Refund ?

    No, VAT Refund can only be given to a tourist/foreign passport holder who lives   or stays in Indonesia for a maximum of 2 (two) months from date of entry into Indonesia.

  1. What if I buy goods from a retailer with “VAT Refund for Tourists” logo and those goods are shipped by carrier companies ? Am I eligible for VAT Refund ?

    No, VAT Refund can only be given to a tourist/foreign passport holder who carries on the goods as accompanied baggage overseas.

  1. Is it possible to purchase goods with several payment receipts and be eligible for VAT refund facilities ?

    Yes, as long as you have one valid tax invoice (a tax invoice attached with one  payment receipt) with a minimum VAT amount of Rp. 500.000 (five hundred thousand rupiah) from the same shop with the same purchasing date.

Please ask the retailer to consolidate your purchases onto one payment receipt and one tax invoice totaling Rp. 500.000 or more

  1. How can I find out which shop (retailer) has been registered as a “VAT Refund for Tourists” participant ?

 

Please check the DGT website or www.pajak.go.id

 

Special Cases Services

Special cases to be served by Tinna Consulting:

  1. TAX-ATTORNEY
  2. TAX-COURT
  3. OBJECTION
  4. APPEAL
  5. Etc

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Hubungi Tinna sekarang melalui email : tinna_consulting@yahoo.com

Atau melalui telepon:
0813-1017-9966, 0857-1840-1771, 021-26875403, 0251-8327812, 0283-3272813

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_____

Hubungi Tinna sekarang melalui email : tinna_consulting@yahoo.com

Atau melalui telepon:
0813-1017-9966, 0857-1840-1771, 021-26875403, 0251-8327812, 0283-3272813

General Provision

GENERAL PROVISION WHAT KIND OF TAX DOES THE DIRECTORATE GENERAL OF TAXES ( D G T ) ADMINISTER ?
DGT administers income tax, value addes tax and acquisition duty of land and building

WHO  QUALIFIES AS   TAXPAYER  ?
Taxpayer are individual or corporation who has any tax obligation either income tax (PPh)  or Value Added Tax  (PPN)

REGISTRATION
How do get a taxpayer identification number (TIN)
The requirement of registration are :
–    Certification from Board of Investment (BKPM)
–    Notary deed for establishment of the corporation
–    Power of attorney if the application is signed by person who is not the authorized person in the company

WHERE DO HAVE TO REGISTER IF I HAVE SERVERAL BRANCHES ?
Taxpayer who has more than one place of business, branches, representative which are located outside Jakarta, should register at each tax office which is responsible for each place of business for the purpose of witholding taxes and value added tax only.

WHEN  DO I HAVE TO HAVE  A T IN   ?
Corporations and individuals that are liable ton be taxed shall have TIN as an identitiy for tax purpose.  Single TIN will apply for both Income Tax and Witholding Tax

IS  IT  POSSIBLE  TO  REGISTER  VIA  INTERNET  ?
Yes, you may register via internet by application of E-registration

IS  THERE  ANY ACTION TAKEN BY DGT IF A FIRM WHICH HAS ANY OBLIGATION IN VAT NOT REGISTER ?
The Directorate General of Taxes may issue a Taxpayer Identification Number  and / or to confirm a firm as a Taxable Person for VAT Purposes ex-officio in case a Taxpayer for VAT Purpose  does not fulfill the obligation to register

HOW LONG DOES THE REGISTRATION PROCESS TAKE  ?
The registration process will take about one working day

HOW DO I PAY MY TAX ?
The tax due can be paid byn taking a payment slip (SSP) to a bank

WHEN DO I HAVE TO FILE THE ANNUAL CORPORATE TAX RETURN ?
The Annual Income Tax Return of a Taxpayer who is obliged to maintain bokkeeping must be accompanied by financial statement in the form of balance sheet and income statement as well as other information required to calculate the amount of Taxable Income

WHAT IS A COMPLETE TAX RETURN ?
The return is considered as a complete return if the information listed in the form all fulfilled the attachment is complete and the return is signed by the authorized person

HOW DO I FULFILL MY TAX RETURN ?
Every Taxpayer shall be obliged to complete its Tax Return in Indonesia Languange, Latin alphabet, Arabic numerals, and Rupiah currency, and to sign and submit it to the district tax office where the Taxpayer is registered.
A Taxpayer which has obtained a permission from the Minister of Finance to use foreign language and Non-rupiah currency in its Tax Return, shall  fill its Tax Return in the language and the currency other than Rupiah as permitted, as regulated by a decree of the Minister of Finance

HOW DO I SUBMIT THE ANNUAL TAX RETURN ?

The tax return should be submitted at the tax office with which the Taxpayer is registered or sending it by a certified delivery either through post office or courier service. If you submit directly to the tax office, you will get a receipt of your filling. If you use a post office or courier service, the documentation received from that office, may be used as a filing receipt. Failure to comply with the filing deadline will be subjected to an adminstrative sanction of rupiah.

CAN  I  ASK  FOR  ANY  EXTENSION   TO  SUBMIT THE ANNUAL  TAX  RETURN  ?
Timing to submit the corporate tax return has a prescribed due date. However, a corporation may request an extension to submit with the following documents / condition :

–    Letter of  Request
–    A Temaporary Tax Return (code Y)
–    An Interim Financial Statement, and
–    Pay the estimated tax due based on the temporary tax return

The extension is given for a maximum of six months after the end of the period of filing

IS  IT  POSSIBLE  TO  MAKE  ANY  CORRECTION  IF  AN  ERROR(S)  IS  FOUND  IN  MY  TAX  RETURN  ?

Taxpayer  may  amend a submitted Tax Return voluntarily by submitting written statement, within two years from the end of a Taxable Period, provided that the Director General of Taxes has not commenced a tax audit

IS  THERE  ANY  PENALTY FOR THE INCREASE OF TAX PAYABLE DUE TO AN AMENDED TAX RETURN ?
In case a Taxpayer voluntarily amends a submitted Tax  Return which results in an increase of the tax payable. The Taxpayer shall be subject to an administrative penalty of 2 % interest per month on the underpaid tax, calculating from the original due date for filling the Tax Return up to the date of payment of the underpaid tax arising from the connection of the Tax Return

WHEN  DO  I  HAVE  TO  PAY  THE  TAX  ?
The tax due based on an annualn tax return should be paid not later than 25th of month in which to file the tax return, For instance, if the taxable year in January-Decembeeer payment should be done not later than March 25 of the succeeding year.

Due date for payment of monthly corporate income tax installment is 15 days from the end of a month

WHAT IS THE PENALTY FOR LATE PAYMENT ?

If a payment or remitatance of tax payable is made after the due date of the payment or remittance and administrative penalty in the form of 2 % interest monthly, calculated from the due date of payment up to the date of payment where fraction of the month is treated as one full month shall be imposed

WHAT IS THE STATUTE OF LIMITATION FOR TAX MATTERS ?
Within ten years from the date a tax is payable or from the end of Taxable Period the Directorate General of Taxes may issue a Notice of Tax Underpayment Assessment in the following conditions :

  1. Based on the result of a tax audit or other information, a tax payable is unpaid or underpaid
  2. A Tax return is not filed within certain period and after being warned in writing, the Tax Return is not filed within the time specified in the Letter of Reprimand
  3. Based on the result of a tax audit of VAT and Sales Tax on Luxury Goods, it is found that  a tax overpayment should not have been carried over or that 0% rate should not have been applied
  4. The obligation to maintain bookkeeping have not been met so that the amount of tax payable cannot be determined