Case Study: VAT Refund Assistance in Indonesia’s Chemical Industry

VAT refund in Indonesia is critical for companies with large transaction volumes, especially in industries with significant overpayment exposure. However, navigating a tax audit without experienced support can turn a potential refund into a financial risk.

A leading company in Indonesia’s chemical industry turned to InCorp (an Ascentium Company) for assistance in securing its VAT refund. Having already worked with us on tax reporting services, the client trusted our team to represent them and manage the process with the tax authorities.

The Challenge in Securing VAT Refund in Indonesia

The client faced multiple challenges in managing their VAT refund in Indonesia:

• Significant VAT overpayment exposure from high transaction volumes
• Lack of internal staff with strong tax expertise
• High risk of tax corrections by auditors, which often turn overpayment claims into underpayment findings

Ensuring the refund was processed correctly was urgent. Without expert handling, the client risked losing legitimate refunds and facing additional tax liabilities.

InCorp’s Solution: Expert Handling of VAT Refund

InCorp provided end-to-end VAT refund assistance, which included:

• Representing the client during tax audit discussions
• Assessing the tax audit findings and preparing detailed responses
• Supporting the client throughout the entire process with professional representation before the tax auditors

Our knowledge of Indonesian tax regulations and proven experience in handling tax audits ensured that every step was managed efficiently and with minimal disruption to the client’s operations.

The Results: Successful VAT Refund Indonesia with 99% Accuracy

The outcome was highly successful:

• The client received their VAT refund from Indonesia as claimed
• The project achieved a 99% success rate (note: VAT refund outcomes may vary depending on audit risks and case-specific factors)
• The client gained additional cash flow, strengthening their business operations

Why VAT Refund Matters in Indonesia

Securing a VAT refund in Indonesia is about reclaiming overpaid taxes, ensuring compliance, and maintaining a robust and healthy business cash flow. Many companies risk audit findings that convert refunds into underpayments, but these risks can be minimized with the right partner. Here’s why it matters:

• Improves Cash Flow: Reclaims overpaid VAT, unlocking capital for operations and growth.
• Ensures Legal Compliance: Aligns with VAT Law No. 42/2009, Article 9 (4a), protecting you from penalties.
• Reduces Audit Risks: Expert handling prevents refund claims from being denied or reclassified.

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Secure Your VAT Refund with InCorp

Do you need assistance with a VAT refund in Indonesia? InCorp Indonesia’s tax team provides expert guidance, represents you before tax auditors, and maximizes your chance of a successful refund. Here’s how we can help:

• Audit-Ready Expertise: We represent your company during audits with proven strategies and regulatory knowledge.
• Full-Service Support: We handle the entire process from documentation to refund disbursement.
• High Success Rates: Our clients consistently receive timely VAT refunds with industry-leading approval rates.

Fill out the form below to streamline your VAT refund Indonesia process and secure the financial returns your business deserves.

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