Pandemic Subsides, DGT Opens VAT Refund Counter at Airport

JAKARTA. Starting 1 January 2023 the Directorate General of Taxes (DGT) will reopen face-to-face services for returning Value Added Tax (VAT) payments, or VAT Refunds for foreign tourists at the airport.

Provision on the direct return of VAT Refund is in accordance with Minister of Finance Regulation (PMK) Number 120/PMK.03/2019.

Based on the announcement made by the tax authorities, the reopening of the service was carried out in line with the slowing down of daily positive cases of Covid-19 in Indonesia.

In addition, the reopening of VAT Refund return counters at the airport is an effort by the government to provide services to foreign tourists, as one of the foreign exchange contributors in the country.

Previously, offline VAT Refund services at airports had to be closed during the Covid-19 pandemic. However, even though it will be reopened, the DGT ensures that the service process will be carried out by taking into account the applicable health protocols.

Meanwhile, during the Covid-19 pandemic, the VAT Refund process is carried out electronically, by sending an electronic mail that has been accompanied by documents such as photos, passport photos containing identity, boarding passes, invoices and tax invoices for the purchase of goods.

Furthermore, if the application is approved, the DGT will pay the requested VAT by transfer. However, with the return to the offline service, the VAT refund payment will be made in cash at the airport.

For information, if referring to 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 rule are those who stay in Indonesia for no more than 60 days.