The Indonesian Government, through the Directorate General of Tax (DGT), has issued regulation No. PER-17/PJ/2019 (“PER-17”) concerning the Procedures for Registration and Obligations of Retail Store VAT Entrepreneurs (PKP) which participate in the VAT Refund Scheme for Foreign Tourists.

The important points of PER-17 can be summarized as follows:

• Each Retail Store PKP that participates in the VAT refund scheme for tourists shall register on-line through the DGT website.
• A Retail Store PKP must perform the following obligations:
  1. Display the “TAX-FREE SHOP” logo on its Store;
  2. Publish the information related to the VAT refund for tourists through flyers or social media;
  3. Issue a “Specific VAT Invoice” through the VAT Refund for Tourist Application for foreign tourists that apply for the VAT refund;
  4. Provide the answers related to the correctness of data of Specific Tax Invoices; and
  5. Record the numbers, dates, and other data in the Special Tax Invoice into the VAT Refund for Tourist Application.
• The issuance of a “Specific VAT Invoice” sh0uld satisfy the following requirements:
  1. VAT amount at least IDR 50,000 (fifty thousand rupiahs)
  2. The Invoice must include the following information:
     1. The tourist’s Passport Number, which is entered in the “Taxpayer Identification Number” column;
     2. The complete address of the tourist as stated in their passport, which is entered in the “buyer’s address” column; and
     3. The cash register, payment receipt, or invoice number.

PER-17 became effective on 1 October 2019 and revoked the previous regulation, PER-28/PJ/2013.