Indonesian Government Offers VAT Incentive for Economy-Class Flights to Boost Economy

• Indonesian government offers VAT incentive for economy-class flights to boost economy during school holidays in 2025.
• Government covers 6% of VAT on airfares; passengers pay remaining 5%.
• Incentive applies to tickets purchased and flights taken from June 5 to July 31, 2025.
• Air transportation businesses must issue tax invoices reflecting 5% VAT and report in VAT returns.
• Detailed VAT DTP transaction lists must be submitted by September 30, 2025.
• New regulation for preliminary tax refunds for low-risk taxable entrepreneurs effective May 21, 2025.
• Low-risk entrepreneurs do not need formal designation from tax authorities.
• Preliminary refund applications can be submitted by eligible taxpayers.

Source: internationaltaxreview.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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