Page 3 - Newsletter (VAT Refund for Tourist: Simplified Retail Shop Registration Mechanism)

DDTC Newsletter Vol.02 | No.07 I October 2019 Page 3 of 4

VAT Refund for Tourist: Simplified Retail Shop Registration
Mechanism

the event of a request for the confirmation of the special The rules provide details of unsettled KB DBH and LB
tax invoices. Fifth, recording the number, date, and other DBH for the fiscal year up to 2017, for 2016, 2017, and
data from manual special tax invoice into the VAT Refund 2018 fiscal years.
for Tourists application no later than the next day after
the application is available online. KB DBH is the difference between the DBH calculated
based on the realization of state revenue and DBH
The DGT has the authority to revoke the access rights of that has been distributed to the regions or DBH that is
the VAT Refund for Tourists application in the event that calculated based on the prognosis of the realization of
a PKP Retail Store fails to carry out the abovementioned state revenue in one particular fiscal year. In contrast,
obligations. Further, the PKP Retail Store is obliged to LB DBH is the difference between the realization and the
file Periodic VAT Return for all supply of taxable goods, funds distributed or calculated based on the prognosis of
including the supply of luggage to foreign tourists in the state revenue.
accordance with the general taxation provisions.
Up to the 2017 budget year, undistributed KB DBH
Special Tax Invoice Provisions amounts to Rp19.2 trillion. Conversely, for the same
period, unsettled LB DBH amounts to Rp11.4 trillion.
The issuance of special tax invoices for the supply of
luggage as referred to above must meet the following
In the aforementioned period, KB and LB were distributed
conditions:
in DBH of income tax (pajak penghasilan/PPh), DBH of
• a minimum amount of VAT is IDR50,000.00 (fifty
land and building tax (pajak bumi dan bangunan/PBB),
thousand rupiahs);
DBH of tobacco products excise (cukai hasil tembakau/
• the filing procedure is as follows: CHT) DBH, and DBH of natural resources (SDA) which
comprises forestry and fisheries
1) fill the ‘Taxpayer Identification Number’ column
with the foreign tourist’ passport number as
Furthermore, for the 2016 and 2017 fiscal years, KB DBH
stated in the passport;
amounts to Rp36.5 billion. On the contrary, the LB DBH
2) fill the ‘buyer’s address’ column with the foreign amount for the same fiscal year reaches Rp9.2 billion.
tourist’s complete address as stated in the However, in this fiscal year, KB and LB are only found in
passport; and DBH of mineral and coal (sumber daya alam/SDA).
3) enlist the cash register, payment receipt, or
On the contrary, DBH KB for the 2018 budget year
invoice number.
amounts to Rp23.6 trillion. Such an amount consists of
KB DBH of PPh of approximately Rp404.4 billion, KB DBH
Special tax invoices that do not meet the above
of PBB of Rp3.1 trillion, KB DBH of CHT of Rp92.4 billion,
requirements cannot be used as a basis for VAT refund
and the remaining is KBH of SDA.
for foreign tourists.
Moreover, the LB DBH for the 2018 budget year amounts
In any case, the VAT Refund for Tourists application is
to Rp2,4 trillion. Such an amount consists of LB DBH of
offline, a special tax invoice should be prepared manually
PPh of Rp1.1 trillion, LB DBH of PBB of 609.8 billion,
in accordance with the statutory regulation. Presently,
and LB DBH of natural resource forestry in addition to
this is regulated through Minister of Finance Regulation
fisheries which if accumulated reaches Rp1.1 trillion.
No. 120/PMK/03/2019 concerning the Procedure and
Settlement of VAT Refund Requests of Individual Holder
The KB DBH listed in this MoF Regulation will be
of Foreign Passport (MoF Reg No. 120/2019).
distributed according to the allocation in the State
The Ministry of Finance Released Budget (Anggaran Pendapatan dan Belanja Negara/
APBN) and its amendments. Signed on 8 October 2019,
Underpayment & Overpayment of this regulation also sets forth a list of KB and LB amounts
Revenue Sharing Fund for each region contained in the Appendix of MoF Reg.
No 140/2019.
The Ministry of Finance has stipulated the accumulation
of underpayment (kurang bayar/KB) and overpayment
(lebih bayar/LB) of revenue sharing fund (dana bagi

hasil/DBH) per province and district/city by 2019. The
stipulation is outlined in MOF Reg No. 140/2019.