Christmas Flying? Here’s a VAT Break for Bali Residents

Hey Bali expats and digital nomads! Good news for your holiday travel plans: the Indonesian government is cutting VAT on economy-class domestic flights this Christmas and New Year. Effective from October 20, 2026, if you're booking flights between October 20, 2026, and January 10, 2027, for travel between December 22, 2026, and January 10, 2027, you'll get a government-funded VAT break on your base fare and fuel surcharge.

This is a big deal for those of us who are always on the move. The regulation, Finance Ministry Regulation No. 77 of 2026, means the government will cover 100 percent of the VAT due on the eligible base fare and fuel surcharge. It's a smart move to reduce travel costs during one of Indonesia's busiest holiday periods.

While the incentive applies only to scheduled domestic economy-class flights, it's a significant relief for those of us who are planning to visit Jakarta, Yogyakarta, Lombok, Labuan Bajo, or other Indonesian cities. Just remember, additional services like extra baggage might still carry VAT. So, check the final fare breakdown when booking, especially if you add any extra services.

Happy travels, everyone! This could save you some cash and make your holiday plans a bit more affordable.