VAT Refund for Tourist Service or refund of Value Added Tax (VAT) of goods for tourists shopping in Indonesia will promote Indonesia image in foreign eyes.
Director General of Tax Ministry of Finance, Fuad Rahmany said that after the VAT refund up to Rp5 million tourists spending on goods, Indonesia will impose a VAT tax refund with platfon maximum of Rp1 million as in advanced countries.
“Later VAT up to Rp1 million could be withdrawn by foreign tourists. It is going into effect this year, because now its process is already in the Ministry of Finance,” he said while talking at Ngurah Rai Airport, Bali, as written on Saturday.
He said the effort is like a leap of civilization and technology to a higher level of being able to be equal with advanced countries.
“The important thing is that Indonesia is equivalent to advanced countries, so that our service is in one level with Singapore, the Netherlands and the United States,” he explained.
Furthermore Fuad said that the tax refund is the right of the tourists because it is basically not subject to foreigners.
“If they do not ask for tax refund, it means that we are lucky. With this service, foreigners can now consider us modern as the people first impression for Singapore,” he said.
The VAT refund service system, he added, has been thoroughly connected with major airports, such as Ngurah Rai, Soekarno – Hatta, Djuanda, Adi Sutjipto and Kuala Namu Airport, Medan and it can both be seen anywhere foreign tourists shopping.
“In an advanced country there must be VAT Refund, because if we don’t it will be silly anyway.