How to Calculate Restaurant Tax Fees

PERTANYAAN

Why is it that when we eat at a restaurant, VAT is charged? While when we eat at roadside food stalls or other MSMEs (small businesses) are not charged VAT? What is the legal basis, and what exactly are the Indonesian restaurant tax regulations? How much restaurant tax should consumers pay?

ULASAN LENGKAP

This article is an English translation of Cara Menghitung Biaya Pajak Restoran, written by Renata Christha Auli, S.H., and published on Tuesday, 8 August 2023.

This article is the second update of the article with the same title, written by Ikatan Kuasa Hukum dan Advokat Pajak Indonesia (IKHAPI) and was first published on Wednesday, 11 November 2020, and first updated by David Christian, S.H. on Wednesday, 2 November 2022.

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Taxes on Certain Goods and Services on Food and Beverages

The restaurant Value Added Tax ("VAT") a.k.a. Pajak Pertambahan Nilai you are referring to is more precisely known as restaurant tax or pajak restoran, and is now referred to as Taxes on Certain Goods and Services or Pajak Barang dan Jasa Tertentu ("PBJT") which is regulated in Article 1 number 42 Law 1/2022. The article states that Taxes on Certain Goods and Services is a tax paid by the final consumer for the consumption of certain goods and/or services.

Then, what is meant by certain goods and services is that which is sold and/or delivered to the final consumer.[1] Furthermore, the object of Taxes on Certain Goods and Services is the sale, delivery, and/or consumption of certain goods and services which include:[2]

1. food and/or beverages;
2. electricity;
3. hospitality services;
4. parking services; and
5. arts and entertainment services.

The food and/or beverages referred to are food and/or beverages that are provided, sold, and/or delivered, either directly or indirectly, or through orders by restaurants.[3] Then, the restaurant referred to is a facility for providing food and/or beverage services for a fee,[4] which at least provides food and/or beverage serving services in the form of tables, chairs, or eating and drinking utensils.[5]

As for what is excluded from the object of Taxes on Certain Goods and Services is the delivery of food and/or beverages that:[6]

1. with a business distribution not exceeding a certain limit stipulated in the regional regulation;
2. conducted by self-service shops or similar, which do not solely sell food and/or beverages;
3. conducted by food and/or beverage factories; or
4. provided by facility providers whose main business activity is to provide aircraft waiting services (lounge) at airports.

Meanwhile, the tax subject of Taxes on Certain Goods and Services is the consumer of certain goods and services,[7] and the taxpayer of Taxes on Certain Goods and Services is an individual or entity that conducts sales, delivery, and/or consumption of certain goods and services.[8] For your information, tax subject in Bahasa Indonesia means subjek pajak, meanwhile taxpayer means wajib pajak.

Furthermore, the basis for the imposition of Taxes on Certain Goods and Services is the amount paid by consumers of certain goods or services,[9] with a rate set at a maximum of 10% which is determined by regional regulation.[10]

MSME Tax

Then to answer your question, for Micro, Small and Medium Enterprises ("MSMEs") that are not subject to restaurant tax in Indonesia or Taxes on Certain Goods and Services, we assume that the MSMEs are indeed not included as objects of Taxes on Certain Goods and Services, determined by local regulations. In Indonesia, MSMEs are known as Usaha Mikro, Kecil, dan Menengah (“UMKM”).

For example, in Jakarta, what is not included as the object of restaurant tax according to Article 3 section (3) DKI Jakarta Provincial Regulation 11/2011 are:

1. services provided by restaurants or restaurants whose management is under the same management as the hotel;
2. services provided by restaurants whose sales value (business distribution) does not exceed IDR200 million per year.

Difference between Taxes on Certain Goods and Services and VAT

To clarify your question, the difference between Taxes on Certain Goods and Services or restaurant tax and VAT is that VAT is collected by the central government through the Directorate General of Taxes,[11] while Taxes on Certain Goods and Services which includes food and/or beverages or restaurant tax is collected by the district/city government.[12]

The determination of the amount of regional tariffs also depends on each regional regulation that regulates it. So, how to calculate Taxes on Certain Goods and Services? Here is the review.

How to Calculate PBJT

As an illustration, here we explain how to calculate Taxes on Certain Goods and Services a.k.a. PBJT that is payable on food and/or beverages in restaurants.

The principal amount of Taxes on Certain Goods and Services payable is calculated by multiplying the PBJT imposition base by the PBJT rate.[13]

The principal amount of PBJT = PBJT imposition base x PBJT rate

Example:

1. Basis of imposition of PBJT (nominal payment received/collected in accordance with receipts or other similar documents), for example, the cost of a meal at a restaurant amounting to Rp70 million; and
2. PJBT rate of 10%.

Then, the calculation of PBJT on food and beverages is IDR70 million x 10% = IDR7 million.

Then it is important for you to know, for sales tax on food, it is calculated from the time of payment/delivery/consumption of certain goods and services.[14] Thus, the tax for restaurants or PBJT that has been calculated above will be listed on the receipt.

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These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Law Number 42 of 2009 on Third Amendment to Law Number 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods;
2. Law Number 1 of 2022 on the Financial Relations between the Central Government and Local Governments;
3. DKI Jakarta Provincial Regulation Number 11 of 2011 on Restaurant Tax.

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[1] Article 1 number 43 Law Number 1 of 2022 on the Financial Relations between the Central Government and Local Governments (“Law 1/2022”).

[2] Article 50 Law 1/2022.

[3] Article 1 number 44 Law 1/2022.

[4] Article 1 number 45 Law 1/2022.

[5] Article 51 section (1) letter a Law 1/2022.

[6] Article 51 section (2) Law 1/2022.

[7] Article 56 section (1) Law 1/2022.

[8] Article 56 section (2) Law 1/2022.

[9] Article 57 section (1) Law 1/2022.

[10] Article 58 section (1) and (4) Law 1/2022.

[11] Article 1 number 27 Law Number 42 of 2009 on Third Amendment to Law Number 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods.

[12] Article 4 section (2) letter c Law 1/2022.

[13] Article 59 section (1) Law 1/2022.

[14] Article 50 section (3) Law 1/2022.