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Making Life Less Taxing

New VAT Tax Refund Kiosk Inaugurated at Bali Ngurah Rai International Airport


Bali News: Making Life Less Taxing
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(10/11/2013)

Through the end of September 2013, the government has refunded Rp. 585,580,243 in value added tax refunds via the VAT Refund Locket in operation at Bali’s Ngurah Rai International Airport.

That amount has been spread across 535 foreign visitors applying for the refund of the 10% VAT tax paid at selected retail outlets in Bali.

The head of the Bali Tax Office, Arif Yanuar, told Bisnis Bali on Thursday, October 10, 2013: “The execution of the VAT refund using a web-based service at the Ngurah Rai Bali Airport is increasingly efficient. There have been 535 applicants receiving a total of Rp. 585 million in refunds.”

The new web-based refund procedure has reduced the processing, achieving significant improvements on a VAT Refund Scheme first introduced in April 2010.

On Friday, October 4, 2013 the Indonesian Minister of Finance Chatib Basri inaugurated two tax facilities at Bali’s renovated airport. The VAT refund kiosk is a pilot project of the Indonesian government intended to encourage higher spending levels among tourist visitors and induce more people to visit Indonesia.

The Director General of Tax, Faud Rahmany, told the press that the VAT Refund for Tourist System was being extended in keeping with the standards and competitive practice in operation at other international destinations.

Tourist making claims for refunds of the 10% VAT for sums less than Rp. 5 million (US$435) can receive an instant cash refund. Refunds in excess of that amount are done via a transfer to the foreign travelers bank account.

The VAT Tax Refund for Tourist program is now in place at five Indonesian airports: Soekarno-Hatta in Jakarta; Ngurah Rai in Bali; Adi Sutjipto in Yogyakarta; Juanda in Surabaya; and Kuala Namu in Medan.


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