DGT Removes VAT Foreign Tourist Refund Service at the Airport

JAKARTA. The Directorate General of Taxes (DGT) has removed the Value Added Tax (VAT) or VAT Refund requesting service for the luggage of foreign tourists' personal luggage at the airport. This is done to minimize the risk of transmission of Corona Virus Disease 2019 (Covid-19).

Based on the announcement of the Minister of Finance number PENG-43/PJ/2020, which came into force on 26 March, 2020, travelers originating from abroad can still apply for a VAT Refund through electronic channels. 

To be able to apply for a VAT Refund, first, foreign tourists must prepare several documents, such as a photo of the identity page on the passport, boarding pass for departure from Indonesia, invoices and tax invoices for purchase of luggage, and photos of luggage.

The documents are then sent via email to the Airport Restitution Implementation Unit (Unit Pelaksana Restitusi Pajak Pertambahan Nilai Bandara/UPRPPN Bandara), where the foreign tourist departs. The following is a list of email addresses for a number of UPRPPN at various airports:

• Ngurah Rai Airport, Denpasar (vatrefund.badungselatan@pajak.go.id)
• Soekarno-Hatta Airport, Cengkareng (kpp.402@pajak.go.id)
• Juanda Airport, Sidoarjo (kpp.643@pajak.go.id)
• Kuala Namu Airport, Medan, Sumatera Utara (kpp.125@pajak.go.id)
• Yogyakarta International Airport, Kulon Progo (kpp.544@pajak.go.id)

Upon the request, the tax officer will later examine all submitted documents, to ensure that the data submitted is appropriate. After that, the DGT will decide whether the application is approved or not.

For the information, based on the Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) number 120 / PMK.03 / 2019, the total value of VAT that can be returned to foreign tourists is at least IDR 500,000. The criteria for foreign tourists who can apply for a VAT Refund according to this regulation is for those who stay in Indonesia not more than 60 days.

Before removing VAT Refund services directly at the airport, DGT has also eliminated other face-to-face taxation services at various Tax Offices (Kantor Pelayanan Pajak/KPP).