How to get Tax Refund in Indonesia for Foreigners

Tax refund in Indonesia for Foreigners is a facility provided to tourists holding foreign passports in Indonesia to claim back Value Added Tax (VAT) on goods purchased at any shop registered as a participant in the ” Tax Refund for Tourists “.

The Indonesia Government has implemented a tax refund scheme for tourists since October 1, 2019 by Minister of Finance Regulation No. 120/PMK/03/2019 for Submission and Settlement of Requests for Return of Value Added Tax (VAT).

Those who are entitled to this tax refund facility are foreign passport holders who are not Indonesian citizens or are not permanent residents of Indonesia, and who live or stay in Indonesia no more than 60 days after their arrival.

For calculate your VAT, you can visit our Indonesia VAT Calculator

Terms of Tax Refund In Indonesia for Foreigners

The following are the tax refund requirements that must be met:

  • Goods must be purchased from the shop with the “Tax Refund for Tourists” logo and with a tax invoice (tax invoice with related payment receipt attached) from the shop.
  • The minimum tax payment is Rp.50,000.00/ transaction and the total tax from several receipts submitted must meet a minimum of Rp.500,000.00.
  • Goods must be purchased within 1 (one) month before leaving Indonesia.
  • Goods must be taken out of Indonesia as additional baggage within 1 (one) month from the date of purchase.
  • The tax refund service only applies to goods transactions, not services. So, restaurant or hotel transactions cannot be applied.

The tax refund can be given in cash in rupiah currency or by transfer if the amount of the tax refund exceeds IDR 5,000,000.00. The transfer will be made within one month of receipt of the tax refund application.

If the amount of tax refund exceeds IDR 5,000,000 (five million rupiah) and the passenger does not want it to be returned via transfer, then the amount of IDR 5,000,000 (five million rupiah) will be returned in cash and the remaining tax is non-refundable.

Procedure Tax Refund in Indonesia for Foreigners

shop VAT Tax Refund

Tax refunds can only be claimed at the airport on your departure date and you must follow these steps:

  • The original valid tax invoice (tax invoice attached with one payment receipt) is submitted to the Directorate General of Taxes (DGT) officer at the Tax Refund counter (UPRPPN Airport). This valid tax invoice also works as a Tax Return application to DGT.
  • Present your passport, boarding pass and items purchased as checked baggage.
  • Receive your tax refund in cash or transfer it to your bank account.

Also read about: Indonesia Income Tax Rate

Online Procedure of Tax Refund in Indonesia for Foreigners

Regarding the Corona virus outbreak, DGT has no longer provided face-to-face services at the Airport Tax Return counter. To serve tourists who wish to claim their VAT, the DGT has implemented an online tax refund process starting March 26, 2020.

The online tax refund procedure is carried out by sending an e-mail to the Airport UPRPPN email address according to the place of departure of foreign tourists outside Indonesia by including the subject ‘VAT Refund’.

The e-mail must be accompanied by information and several electronic documents as follows:

  • Information about the foreign tourist’s name, account number and bank transfer destination on behalf of the foreign tourist concerned.
  • Scan or photo of the foreign passport identity page.
  • Boarding pass outside Indonesia.
  • Invoices and Tax Invoices for purchases of luggage.
  • Photo of purchased luggage. 

Furthermore, after the requirements have been received in full, the UPRPPN officer will process the tax refund request.

The following is the Airport UPRPPN electronic mail address listed in the DGT announcement of the Ministry of Finance:

FAQs

Yes, Govt. has implemented a facility for tourists since October 1, 2019 by the Minister of Finance. The tourists can claim refund VAT (Value Added Tax) on goods purchased at the store registered as a “VAT Refund for Tourists” participant.

VAT is refundable and applicable in Jakarta and other Indonesia cities. Companies can claim VAT (Values Added Tax) by submitting applications at the end year. 

Indonesia has adopted a worldwide income taxation system, meaning individuals pay the VAT (Value Added Tax) on the income they earned in Indonesia, income they earned from abroad, unless there is an applicable double tax agreement.

11% VAT (Value Added Tax) is imposed on most Goods and Services. The VAT was increased in April 2022 and be to 12% by 2025.

Conclusion

Tourists can claim the VAT (Value Added Tax) from Indonesia. The Indonesian Government has implemented a tax refund scheme for tourists.But there are some terms, Goods must be purchased from registered shops. The Goods must be purchased within 1 month before departing from indonesia. You can also claim your VAT by using an online application.

Henry Thomas

I am Henry. My passion lies in creating high-performing teams, optimizing business processes and leading the strategic direction of the business. My expertise includes helping small businesses with a range of accounting services, tax preparation, business advisory, accounting and bookkeeping, and personal tax planning, as well as company, trust and partnership tax returns and more.