Value Added Tax (VAT) Refund for Tourist

The Indonesian Government has provided a new tax facility for the international tourist that visit to Indonesia. This facility has provided for value added tax (VAT) refund if someone, who is international tourist (in here is called: Tourist), to claim back VAT on goods purchased in any store that registered as a "VAT Refund for Tourists" participant that located in Indonesia.

Who is eligible for a VAT refund?
Any foreign passport holder who is:

1. not an Indonesian citizen or not a Permanent Resident of Indonesia, who lives or stays in Indonesia no longer than 2 (two) months (calender month) since he/she arrived in Indonesia;
2. 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 with "VAT Refund For Tourists" label across Indonesia by showing your passport, and you must have a valid tax invoice (a tax invoice attached with one payment receipt) from the shop.
2. Goods which are excluded are as follows: food, beverage, tobaccao products, guns and any explosive goods (materials), any goods that are prohibited to be taken onto an aircraft.
   
3. 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.
4. Goods are purchased within 1 (one) month before departing Indonesia.

VAT refund payment options
VAT refund can be given in cash or by transfer payment.

1. Given in cash with Indonesian Rupiah (IDR) currency only if the amount does not exceed Rp 5,000,000 (five million rupiah);
2. Through transfer payment, when the VAT refund is in excess of Rp 5,000,000 (five million rupiah), the refund will be 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 does not want to be refunded by transfer, then the amount of Rp 5,000,000 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 the tourist that want to be claim the refund departure and must follow these steps:
Option #1: Claim VAT Refund before Flight 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 the Tourist's bank account;

Option #2: Claim VAT Refund after Flight Check-In Counter
The same steps are applied for this option, however, instead of showing airline ticket the Tourist need to show his/her international boarding pass to the DGT officer.
This option is applied for the passanger who carries on his/her purchased goods as hand baggage. If the goods are oversized or aviation security measures prevent he/she from taking his/her goods on board the aircraft, then he/she have to claim his/her VAT Refund at VAT Refund Counter before Flight Check-In counter as stated on option #1.

Attention:
To get a better service, please ensure that The Tourist allow enough time to complete his/her VAT Refund claims procedures on the day of his/her departure.

Where are the VAT Refund counters located?
VAT Refund counters are located before and after flight check-in counter in selected Indonesian international airport.
Currently VAT Refund Counters are available at Soekarno-Hatta International Airport (at Jakarta) and Ngurah Rai International Airport (at Bali).

This regulation is take effect at 1 April 2010.
source: taxlearning.blogspot.com and Directorate General of Tax of Indonesia