Govt promises VAT refunds in 10 days<\/p>\n
JAKARTA (JP): Director General of Taxation Fuad Bawazier
\npromised yesterday his office would process value added tax (VAT)
\nrefunds for export-oriented firms in 10 days of exporters filing
\ntheir tax refund invoices.<\/p>\n
Fuad said yesterday delays in VAT refunds were mainly because
\nof exporters' negligence in filling out tax invoices.<\/p>\n
\"So, please inform exporters to fill out the invoices
\ncorrectly if they want a quick processing of their VAT
\nrefunds,\" Fuad said.<\/p>\n
He also promised to give priority to exporters which had
\nspecial status from the Ministry of Industry and Trade.<\/p>\n
Those exporters can directly deduct their other tax
\nobligations from their VAT refunds.<\/p>\n
But Fuad rejected accusations his office had slowed down the
\nprocessing of VAT refunds. He said his office had just taken
\nextra caution over possible fraud.<\/p>\n
The tax office had disbursed Rp 2 trillion (US$840 million) in
\nVAT refunds during this fiscal year's first nine months. It plans
\nto disburse Rp 500 billion more this fiscal year.<\/p>\n
\"If you look at that number you can see that we have disbursed
\na lot of money in VAT refunds. So, it's not true that we have
\nslowed down the VAT refunding process. Anyway, we have to be
\ncautious because that's the people's money,\" Fuad said.<\/p>\n
He acknowledged his office was still in arrears for the
\ndisbursement of VAT refunds. The refund backlog reached Rp 702.26
\nbillion.<\/p>\n
He said he had instructed tax officials to settle the refund
\nbacklog by the end of the fiscal year.<\/p>\n
Exporters are exempt from duties and VAT on materials imported
\nfor the production of export goods. Because they are required to
\npay duties and VAT on materials upon their arrival -- if they are
\nnot processed in a bonded zone -- they are entitled to a refund
\non the duties and VAT they have paid.<\/p>\n
The tax office is responsible for the VAT refunds and the
\nDirectorate General of Customs and Excise for the duties refunds.<\/p>\n
Companies registered at the Export Service Facilitating Agency
\nget both VAT and duties refunds from the agency.<\/p>\n
About 2,000 exporters are registered with the agency. Their
\nexports account for 35 percent of Indonesia's non-oil exports.<\/p>\n
Minister of Finance Mar'ie Muhammad ordered last week the
\nDirectorate General of Taxation to accelerate the processing of
\nVAT refunds for exporters.<\/p>\n
He said many exporters had complained about the slow
\nprocessing of VAT and import duty refunds because it was
\naffecting their cash flows.<\/p>\n
Speedy VAT refunds would improve exporters' cash flows
\nenabling them to strengthen their working capital or even expand
\ntheir export production capacity.<\/p>\n
Mar'ie said the slow processing of VAT refunds was because of
\nthe tax office's extreme caution over possible abuse by
\nexporters.<\/p>\n
He said rather than slowing down VAT refunds for all
\nexporters, the tax office should take legal action against those
\ntrying to embezzle state funds through VAT refund facility by
\nfalsifying tax invoices.<\/p>\n
But Fuad defended his office's caution and said it was
\njustified because there had been many fictitious VAT refund
\ncases.<\/p>\n
\"We should be careful in assessing a company's refunds demand.
\nIf not, much of state funds could be embezzled by criminals. It's
\nquite easy for them to demand more than they had paid,\" Fuad
\nsaid.<\/p>\n
During the first nine months of this fiscal year the
\ndirectorate general of taxes had submitted dozens of fictitious
\nVAT refund cases, worth more than Rp 161 billion, to the Attorney
\nGeneral's Office.<\/p>\n
\"That's a large amount of money,\" Fuad said. (rid)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-promises-vat-refunds-in-10-days-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }