Finally on April 30, 2012, the Government through the MoF’s Regulation Number 63/PMK.011/2012 declares that for the reconstruction and rehabilitation project of streets and bridges in Banda Aceh conducted in 2010 and financed through foreign grant gets VAT exemption facility. However, not all the contractors may obtain this facility. It may only be gained by the Main Contractors which are contractor, consultant, and supplier, including professional and instructor/tutor, assigned by the foreign grantor to conduct the grant project or the party binding the contract with the foreign grantor.

The following are several transactions attaining the VAT Exemption facility:

1. Import of Taxable Goods;
2. Utilization of Taxable Services from outside the Customs area;
3. Utilization of Intangible Taxable Goods from outside the Customs area;
4. Purchase of Taxable Goods;
5. Acquisition of Taxable Services;
6. Transfer of Taxable Goods; and/or
7. Transfer of Taxable Services,

conducted by the Main Contractors.

How if the VAT collection has been collected? Referring to this provision, when  VAT has been collected and remitted to the State Treasury the contractors may apply for the refund. And,  upon the VAT collected it should firstly be remitted to the State Treasury and be refunded.