Simple Explanation on ‘Tax Refund’ for Tourist



Shopping has become a must to do in travelling. Foreign tourists are given privilege to get tax refund when buy goods with value add tax (VAT).

Before arriving in Indonesia with sullen face not getting tax refund, there are some things to be known:

Non Service Goods

Tax refund is mostly for good, not for payable service since purchasing good in foreign countries taken to origin country considered as export.

Hotel or restaurant payment receipt are not included on tax refund since it used in foreign country not in origin country. Singapore, for example, set things that eligible for tax refund.

Tax refund for service is usually used by travelers who travel for business not general tourists. The regulations are also more complicated.

The Amount is Different

VAT in each country can be different, so don’t forget to learn the amount before taking care of tax refund.

Before purchasing, it needs to find out whether the good to payed is including VAT or not.

In European countries Non-Uni Europa, VAT can be differed; 25.5 percent in Iceland, 25 percent in Norway, 8 percent in Switzerland or 18 percent in Turkey.

Some countries also set minimal price to be eligible for tax refund.

Look for Sign

Not all stores serve purchases with tax refund. Find stores with ‘Tax Free’ sign or similar sign in its entrance.

While paying, ask the seller how to get tax refund.

They will ask the passport before give a piece of cheque to be used by tourist for tax refund.

Proof of Purchasing

In Uni Europa, tax refund can be done when a tourist really leaves the visited country, not only cross the border.

However, when crossing the border, ask the stamp in cheque given when purchasing.

Keep the purchasing receipt and make sure the goods are looked brand new and not been used. If buying bag in Paris, make sure not use it until get the tax refund.

Look for custom counter for tax refund before check in in airport. Show the purchasing receipt, cheque and the purchased items.

After obtaining stamp, traveler also can process the tax refund in Global Blue office or Planet. However, they charges 4 percent of total tax refund.

Shopping at Airport.

If traveler is not willing to take care tax refund, maybe can consider to shop in duty free shop in airport which is tax free, even though the price is higher than shop outside airport.

Shopping in airport is also exciting since the area are designed to look like mall.



Original title: Penjelasan Sederhana soal 'Tax Refund' bagi Turis

Translator: Arum Apriliyana/Humas Ditjenim


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