Economy Class Only: VAT on Airline Tickets for Eid Holiday to Be Borne by the Government

The Government has officially confirmed that it will bear 100% of the Value Added Tax (VAT) on airline ticket purchases for the Eid holiday or Eid al-Fitr 1447 AH, as stipulated under Minister of Finance Regulation (PMK) 4/2026. 

The provision of the Government-Borne VAT facility is intended to maintain public purchasing power and stimulate the national economy, particularly during the Eid al-Fitr 1447 AH holiday period. 

Accordingly, under PMK 4/2026, the Government-Borne VAT facility is granted subject to several requirements, namely: 

1. The ticket purchase date and the flight date must fall within the specified period. 
2. The facility applies exclusively to economy class flight tickets. 
3. The Government-Borne VAT is calculated based on the base fare and fuel surcharge components. 
4. Airlines are required to submit a detailed list of Government-Borne VAT transactions. 

Applicable Period of the PPN DTP Incentive 

The Government-Borne VAT facility for airline ticket purchases applies to tickets purchased between 10 February and 29 March 2026, with flight departures scheduled between 14 March and 29 March 2026. 

Accordingly, ticket purchases and flights occurring outside those specified dates are not eligible for the Government-Borne VAT facility. In such cases, the VAT payable on those purchases remains due. 

Issuance of VAT Invoices for Government-Borne VAT   

Although the VAT on airline ticket purchases during the Eid holiday period is borne by the government, airline companies registered as VAT-Registered Companies remain obligated to issue a tax invoice or a document treated as equivalent to a tax invoice. 

However, the tax invoice must explicitly state the VAT payable is borne by the Government. In addition, airlines are required to report the Government-Borne VAT  collectively in their monthly VAT Returns. 

Detailed List of VAT Transactions 

Airlines are further required to prepare and report a detailed list of Government-Borne VAT transactions. 

The detailed list must be submitted in accordance with the relevant tax period for the filing of the VAT Returns. The information to be included in the list comprises, among others: 

a. Name and Corporate Taxpayer ID Number of the Air Transportation Business; 
b. Month of ticket issuance by the Air Transportation Business Entity; 
c. Ticket booking reference; 
d. Departure airport of the service recipient; 
e. Arrival airport of the service recipient; 
f. Date of ticket purchase by the service recipient; 
g. Flight date of the service recipient; 
h. Tax base, namely the consideration amount stated on the ticket; 
i. VAT payable; and 
j. VAT payable borne by the Government. 

The detailed list must be submitted electronically through the portal provided by the Directorate General of Taxes no later than 31 May 2026. 

In case of an issues, the detailed list may be submitted directly to the relevant tax office no later than 30 June 2026. (ASP)