Government Tax Refund Approved Minimum Rp 500,000

Government Tax Refund Approved Minimum Rp 500,000
The government eventually agreed to the proposed House of Representatives (DPR) about the planned application of value added tax refund (VAT) or a tax refund for foreign tourists shopping in Indonesia. Director of the Directorate General of Taxation Tax II Chess Widosari Rini said, the working committee meeting Bill (Bill) VAT and PPnBM, the Government agreed on providing tax refund of at least Rp 500,000 for the tourists. Starting next year, every tourist can file a claim for purchases from Indonesia with a total expenditure of at least USD 5 million. In return for 10% of the total grocery or at least USD 500,000. "We freed them VAT as long as he can prove. Just to show the invoice, this is not a discount," he said. The Government approved the proposal in the House bill and the discussion was due to PPnBM general view, it has been applied in several countries. For example, in Singapore.


"It's there in the international rules," said Chess. The government hoped the new policy that would later make the perpetrator of micro, small and medium enterprises (MSMEs) can further develop their business. Therefore, the foreign buyer purchases more products in the spirit of Indonesia.
Once this bill passes into law, the Government will regulate the details of the rules of this tax refund in the form of Regulation of the Minister of Finance. Technically, to facilitate the implementation of that policy, the Directorate General of Taxation will put officials at every international airport. "We hope that this incentive led economic potential," said Chess.

Earlier, Director General of Taxation expressed Tjiptardjo Mochamad Government could only provide tax refund facility with a maximum value of USD 500,000 per invoice purchases. Government concerned, if the amount is more than that, the state will experience a big loss.