Tax Agency Announces Normalization of VAT Refunds for Nonresident Tourists Due to Coronavirus Decreasing

In connection with the decrease in daily cases of Corona Virus Disease 2019 (COVID-19) in Indonesia, the increasing number of foreign tourists entering Indonesia by air, and in order to provide optimal service in accordance with applicable laws and regulations, we hereby convey a number of things as follows:

1. As of the effective date of this announcement, the service for submitting and resolving requests for return of Value Added Tax for personal belongings of foreign passport holders (VAT Refund for Tourists ) is again fully implemented based on Minister of Finance Regulation Number 120/PMK.03/2019 concerning Procedures for Submission and Completion of Requests for Return of Value Added Tax for Personal Luggage of Foreign Passport Holders (PMK Number 120/PMK.03/2019).
2. Thus, the Airport Value Added Tax Restitution Implementing Unit provides face-to-face services to Foreign Tourists who wish to submit a request for return of Value Added Tax on the purchase of luggage and can make a return of said Value Added Tax in cash as stipulated in PMK Number 120/PMK. 03/2019.
3. The provision of face-to-face services as referred to in number 2 is carried out while complying with the applicable health protocols.
4. As of the effective date of this announcement, Announcement of the Director General of Taxes Number PENG-43/PJ/2020 concerning Announcement of Adjustments to Submissions and Completion of Requests for Return of Value Added Tax for Personal Luggage of Foreign Passport Holders ( VAT Refund For Tourists ) is repealed and declared invalid .
5. This announcement goes into effect on January 1, 2023.

This announcement should be widely disseminated and implemented.