Procedure for Submission and Settlement of VAT Restitution for Individual Foreign Passport Holders

On 23 August 2019, the Government of Indonesia, through the Minister of Finance (MoF), issued regulation No.120/PMK.03/2019 (“PMK-120”) concerning the Procedure for Submission and Settlement of Requests for Restitution of VAT on Personal Goods of Individual Foreign Passport Holders.

The VAT that has been paid by a Foreign Tourist can be refunded as long as it meets the following requirements:

  1. The value of VAT is at least Rp500,000.00 (five hundred thousand rupiah); and
  2. The purchase of goods is carried out within 1 (one) month before the Foreign Tourist leaves Indonesia.

The Foreign Tourists who can request VAT refund are persons who are not Indonesian citizens or permanent residents of Indonesia, who stay or are present in Indonesia not longer than 60 (sixty) days from the date of their arrival.

The VAT restitution request shall be made to the DGT through the Airport VAT Restitution Implementation Unit (UPRPPN) by carrying the goods and showing the supporting documents such as passport, departure boarding pass, and special tax invoices issued by the VAT Entrepreneur Retail Stores.

PMK-120 will become effective on 1 October 2019. With the issuance of PMK-120, the previous regulation, i.e. PMK-76/PMK.03/2010, is revoked and declared invalid.

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