PRIVET BALI - Bali Russian & CIS Tourism Society

Subject : ONE (1)% VAT (TAX) IMPLEMENTATION

Bali, 25th February 2010

For immediate release


Dear Industry Partners,

Warmest greetings from the Island of Bali !

I hope with this letter finds all of you in good health and that business is doing well this brand new year 2010. As you all are aware, Bali is one of the top destinations in Asia, which attracts many tourist in each year. With its beaches and culture, Bali has successfully emerged as an ideal resort destination for tourist of all walks of life. However, as this destination increases in its popularity, the competition for Bali Inbound Tour Operators are also increased as more incoming tour companies emerge vying for a share of this lucrative destination. As such, we tour operators tend to lower our commission level in order to provide a better price to attract overseas business partners. The commission level has gone very low which make many companies unable to declare the compulsory one (01)% VAT tax to the government.

The Indonesian government recent parliamentary seating has come strong on companies that did not submit actual report of the one (1)% VAT tax and has step up checks on companies who fail to comply with the law. They have summoned numerous companies for failing to declare its taxes and have implemented regular audit checks by tax officers against the tax that has been declared by the company. As such, PRIVET BALI, which is an association of Russian & CIS markets incoming tour operators under the umbrella of Association of the Indonesian Tours & Travel Agencies, Bali Tourism Board and Bali Government Tourism Office, implores all members to ensure that they include the COMPULSORY ONE (1)% VAT TAX to the final invoice that is billed to clients.

We take this matter seriously and any members who fail to do so will be severely dealt with by the association and the Bali Government Tourism Office. Therefore, we request all members partner to be informed of the situation and to follow this matter seriously and ensure that checks are made by your respective companies to comply with this rule.

Your understanding on this matter is deeply appreciated. We thank you for your time and WISH YOU SUCCESS !

Warmest regards from Bali,


Tanto Ruwiyadi 
Chairman 
PRIVET BALI