Tax Restitution · Akuntax · Since 2001
VAT Restitution in Indonesia: Recovering Overpaid VAT and Income Tax
We help companies reclaim overpaid VAT and corporate income tax through the right route, with the documents to support the claim. This service covers corporate claims, not VAT refunds for tourists.
Overpaid tax is cash your company cannot use
VAT restitution in Indonesia returns tax your company has overpaid, often input VAT that exceeds output VAT. This is common for exporters and for companies in an investment phase. Until the claim is settled, that cash sits with the state instead of in your working capital.
Claims stall for predictable reasons. Supporting documents are incomplete, tax invoices do not match the books, or the claim is filed under a route the company does not qualify for. A standard restitution request is also examined through a tax audit before the tax office decides.
Our USKP-certified consultants prepare the claim so it is ready for that examination, and support you until verification is complete. The audit stage is covered in detail under tax audit assistance.
Which VAT restitution routes are available in Indonesia?
Companies in Indonesia can reclaim overpaid VAT and income tax through two routes. A standard restitution request under Article 17B of the General Provisions and Tax Procedures Law (UU KUP) must be decided within 12 months. A preliminary refund (pengembalian pendahuluan) under Minister of Finance Regulation (PMK) 28 of 2026 is faster, but only for taxpayers that qualify.
Under the standard route, the Directorate General of Taxes (DGT) must issue a tax assessment within 12 months of receiving a complete application. If it does not, the request is deemed granted. The claim is usually examined through an audit during that period.
PMK 28 of 2026 took effect on 1 May 2026 and revoked PMK 39/PMK.03/2018 and its amendments. It covers three groups: taxpayers meeting certain criteria, taxpayers meeting certain requirements, and low-risk VAT-registered entrepreneurs (PKP). Each group has its own conditions and decision deadlines.
Restitution routes and decision deadlines
Route | Who can use it | Decision deadline |
|---|---|---|
Standard restitution request (Article 17B, UU KUP) | Any taxpayer with an overpayment | Tax assessment within 12 months of a complete application; otherwise deemed granted |
Preliminary refund: taxpayers meeting certain criteria (kriteria tertentu) | Taxpayers designated under Article 17C, UU KUP | Preliminary refund decision (SKPPKP) within 3 months for income tax and 1 month for VAT |
Preliminary refund: taxpayers meeting certain requirements (persyaratan tertentu) | Taxpayers within the thresholds below (Article 17D, UU KUP) | 15 working days for individual income tax; 1 month for corporate income tax and VAT |
Preliminary refund: low-risk PKP | VAT-registered entrepreneurs designated as low risk under the VAT Law | 1 month |
Source: UU KUP and PMK 28 of 2026, in force since 1 May 2026.
Who qualifies as a taxpayer meeting certain requirements?
Under PMK 28 of 2026, a company can use the preliminary refund route for taxpayers meeting certain requirements if two limits are met. Its turnover must be up to Rp50 billion, and its overpayment no more than Rp1 billion. A VAT-registered entrepreneur needs deliveries up to Rp4.2 billion and a VAT overpayment of no more than Rp1 billion.
Individuals can qualify too. Non-business individuals with an overpaid income tax return qualify, as do business individuals with an overpayment of up to Rp100 million. These thresholds replaced the older limits under PMK 39/PMK.03/2018, which ceased to apply on 1 May 2026.
Qualifying does not end the tax office's review. The claim is still checked, and a preliminary refund can be audited later. Companies above these thresholds use the standard route, unless they are designated under one of the other two groups. We confirm which group applies before anything is filed.
Thresholds for taxpayers meeting certain requirements
Taxpayer | Turnover or deliveries | Overpayment |
|---|---|---|
Company (corporate income tax) | Turnover up to Rp50 billion | Up to Rp1 billion |
VAT-registered entrepreneur (PKP) | Deliveries up to Rp4.2 billion | VAT overpayment up to Rp1 billion |
Individual with business income | Not applicable | Up to Rp100 million |
Individual without business income | Not applicable | Any overpaid income tax return |
Source: PMK 28 of 2026, in force since 1 May 2026.
What we do on a restitution claim
Choosing the route
We check which route your company qualifies for, and what each one means for timing and later review.
Supporting documents
We prepare the application and the documents that support it, from tax invoices to reconciliations.
Reconciling books and tax invoices
We match input and output VAT, tax invoices and your bookkeeping so the figures agree before filing. If your records need work, our accounting and bookkeeping service can help.
Support until verification is complete
We support you through the audit or review that follows, until the tax office completes its verification.
How we work
Share your overpayment details
Tell us on WhatsApp the tax type, the period and the approximate overpayment shown in your return.
Eligibility and document review
A consultant checks which route applies and which documents are missing or need correcting.
Agree on scope and fees
We agree the work, the timetable for preparing documents and the fee.
Filing and follow-through
We file the claim and support you through each request from the tax office until verification ends.
Frequently asked questions
Is this the same as the VAT refund for tourists?
- No. The tourist VAT refund is a separate scheme for goods bought by foreign visitors, usually claimed when leaving the country. This page covers corporate restitution: recovering VAT or income tax a company has overpaid, based on its own returns. The claim is handled through the company's tax office.
How long does VAT restitution take in Indonesia?
- It depends on the route. Under the standard route, the tax office must issue an assessment within 12 months of a complete application. Preliminary refunds under PMK 28 of 2026 are decided sooner: within 15 working days to 3 months, depending on the group and tax type.
Will our restitution claim lead to a tax audit?
- A standard restitution request is normally examined through a tax audit before the tax office issues its assessment. Preliminary refunds are processed faster, but the tax office can still audit the period later. In both cases, reconciled books and complete documents make the review easier to handle.
Do designations under the old preliminary refund rules still apply?
- Not automatically. According to the DGT, taxpayers meeting certain criteria and low-risk PKPs designated under PMK 39/PMK.03/2018 had to apply for re-designation. The application window ran from 1 to 10 June 2026, after PMK 28 of 2026 took effect. If your company was designated before, check its current status before choosing a route.
Can you help with income tax overpayments as well?
- Yes. Restitution covers overpaid corporate income tax as well as VAT, with different decision deadlines for each. We review your annual return and supporting records, advise on the route that fits, and prepare the claim. Our corporate tax compliance service handles the returns themselves.
Discuss Your Restitution Claim
Tell us the tax type, the period and the amount overpaid. A consultant will explain which route fits and which documents you need.
Discuss Your Restitution Claim on WhatsAppLast reviewed: 5 October 2026 · This page provides general information based on regulations in force on the review date.
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