If you’re planning to visit Bali, Indonesia, you’re in for a treat—sun-kissed beaches, vibrant culture, and friendly locals. But did you know that you can also get a VAT refund for your purchases? If you’re a foreign tourist, this guide will walk you through the steps to claim your VAT refund, ensuring you get the most out of your shopping experience in Bali.
Understanding VAT in Indonesia
Indonesia imposes a Value-Added Tax (VAT) of 11% on most goods and services. As a foreign tourist, you’re entitled to a refund on the VAT paid for items purchased during your stay, provided certain conditions are met. This initiative is part of Indonesia’s effort to boost tourism by making shopping more attractive to international visitors.
“Don’t confuse the VAT refund with the tourist tax in Bali. The tourist tax is a mandatory fee required to enter Bali and cannot be refunded. In contrast, the VAT refund is applicable to the purchases you make while in Bali, allowing you to reclaim the VAT paid on eligible items.”
Who Is Eligible for a VAT Refund?
Not everyone can claim their tax/vat refund in Bali. To qualify for a tax refund in Bali and whole Indonesia, your purchases must meet certain criteria, particularly regarding the goods you plan to take with you when departing the country:
- Non-Resident Status: Only foreign tourists who do not hold Indonesian residency or work permits are eligible.
- Minimum Purchase Amount: You need to have made purchases totaling at least IDR 5,000,000 (approximately USD 330) from a single store on the same day.
- Retailer Participation: Ensure the store is a registered participant in the Tax Refund for Tourists scheme. Look for the “Tax Refund for Tourists” logo or ask the retailer directly.
- Departure: The refund process must be completed on the day of your departure from Indonesia, at participating airports like Ngurah Rai International Airport in Bali.
- Timing of Purchase: The goods must be purchased within one month before your departure from Indonesia.
- Accompanied Baggage Requirement: The goods must be carried out of Indonesia as accompanied baggage within one month of the purchase date. This ensures that the items are intended for personal use and not for resale.
To take full advantage of the tax refund program, it’s essential to shop at participating stores across Indonesia. These stores are easily identifiable by the “Tax Refund for Tourists” logo. To ensure you’re shopping at eligible stores, you can download the complete list of participating shops:
Tax Refund Payment Options
When claiming your tax refund in Indonesia, you have two payment options: cash or bank transfer.
- By Cash in Indonesian Rupiah (IDR):
- The tax refund can be given in cash, but only if the amount does not exceed Rp5,000,000 (five million rupiah).
- By Transfer to Your Bank Account:
- If the tax refund amount exceeds Rp5,000,000 (five million rupiah), the refund will be processed via bank transfer.
- You will need to provide the following information:
- Bank account number
- Account name
- Address
- Bank routing number
- Designated bank for transfer
- Requested currency for the tax refund
- The transfer will be completed within one month of receiving your application for the tax refund.
- Exceptional Circumstances:
- If the tax refund amount exceeds Rp5,000,000 (five million rupiah) and you prefer not to receive the refund via bank transfer, you can opt to receive Rp5,000,000 in cash. However, the remaining balance of the tax refund will not be refundable.
How to Claim Your VAT Refund in Bali
To claim your VAT refund, follow these steps:
- Shop at Participating Stores: Make sure to shop at stores that display the “VAT Refund for Tourists” logo. Keep your passport handy, as you’ll need it when making your purchases to obtain a valid tax invoice.
- Check the Conditions: The goods you purchase must be carried out of Indonesia as accompanied baggage within one month of the purchase date. Items excluded from the VAT refund include food, beverages, tobacco products, guns, and any explosive materials.
- Visit the VAT Refund Counter at the Airport: On the day of your departure, visit the VAT Refund counter located at Ngurah Rai International Airport in Bali. You can find these counters both before and after the check-in area.
- Before Check-In: If your goods are oversized or you cannot carry them as hand baggage due to aviation security measures, visit the VAT Refund counter before checking in. Present your passport, tax invoices, airline ticket, and the purchased goods.
- After Check-In: If you are carrying your goods as hand baggage, you can claim your VAT refund after checking in by showing your international boarding pass to the DGT (Directorate General of Taxes) officer.
- Receive Your Refund: You can receive your VAT refund either in cash (up to IDR 5,000,000) or via bank transfer if the amount exceeds this limit. If you opt for a bank transfer, provide your bank account details, and expect the refund within one month.
Regulations You Should Know
The VAT refund system in Indonesia is governed by Regulation No. 76/PMK.03/2010, which outlines the procedures and conditions for tourists to claim VAT refunds. Make sure you understand that:
- Refund Limit: There’s a maximum limit on cash refunds (IDR 5,000,000). Amounts exceeding this limit will be refunded to your credit card.
- Processing Time: Refunds are usually processed within 30 minutes at the airport, but during peak seasons, it might take longer, so plan accordingly.
- Inspection of Goods: Be prepared to show the purchased goods. If the items are found to be used or not in your carry-on luggage, your refund claim may be denied.
- Personal Experiences: Tips from Fellow Tourists
- Many tourists who have gone through the VAT refund process in Bali recommend keeping all your documents organized and arriving at the airport early. One traveler shared, “I almost missed my flight because I didn’t anticipate the queue at the VAT refund counter. Luckily, the staff were efficient, and I received my refund in cash.”
Another tip is to double-check that the retailer has signed and stamped your VAT refund form. Some tourists have reported issues with incomplete forms that caused delays in their refund process.
Where to Find the VAT Refund Counters in Indonesia
If you’re planning to claim your VAT refund before leaving Indonesia, knowing the exact location of the VAT refund counters is crucial. These counters are strategically placed in several major international airports across the country, making it convenient for tourists to complete the refund process smoothly. In Bali, of course the VAT refund counter is in Ngurahh Rai Airport. Below is a list of the airports where you can find VAT refund counters, along with their specific locations and official websites for further information.
| Airport | Counter Location | Website |
|---|---|---|
| Kualanamu International Airport, Medan | Departure Terminal, 2nd Floor | kualanamu-airport.co.id |
| Soekarno-Hatta International Airport, Jakarta | Counter #1: Terminal 2F, International Departure, 2nd Floor | soekarnohatta-airport.co.id |
| Counter #2: Terminal 3, Gate 1, 2nd Floor | soekarnohatta-airport.co.id | |
| Yogyakarta International Airport, Yogyakarta | Departure Terminal | yogyakarta-airport.co.id |
| Juanda International Airport, Surabaya | Terminal 2, Ground Floor | juanda-airport.com |
| Ngurah Rai International Airport, Denpasar (Bali) | International Terminal, 3rd Floor | baliairport.com |
Conclusion
Claiming your VAT refund in Bali is a fantastic way to save on your purchases. By following the guidelines and ensuring that all conditions are met, you can make your shopping experience even more rewarding. So go ahead, enjoy your time in Bali, and don’t forget to claim your VAT refund before you leave!
