PBJT and Service Charge in Bali: Hotel Restaurant Bills

Main topic: Distinguishing PBJT and service charge on hotel restaurant bills and in accounting records.

Complete foundation: Business Tax Administration in Bali: Records and Controls.

Continue as needed: Bali Hotel Restaurant PBJT: Taxable Transactions, Calculations and Reporting, Hotel Service Charge Accounting: Collection to Distribution.

Assistance is available through business tax consultation.

For Bali restaurant, hotel, resort and villa management owners, tax and service may look simple on an invoice. However, failing to separate them can create differences between POS reports, bookkeeping, funds distributed to workers and PBJT reported to local government.

The short answer about PBJT and service charge in Bali hotel restaurants is that PBJT is a local tax borne by consumers and remitted through businesses, while service charge is an additional service fee collected by the business. They are different even when shown on one bill.

PBJT and Service Charge in Bali Hotel Restaurants: What Is Different?

The main differences concern the purpose and recipient of the funds.

Business owners should not record PBJT as operating revenue. It is collected from customers for remittance and reporting to local government.

What Is PBJT for Bali Restaurants and Hotels?

Under Law 1 of 2022 on Central and Regional Government Financial Relations, PBJT is tax paid by final consumers on certain goods or services. Its taxable categories include food and beverages and hospitality services.

For restaurants, it concerns sales or supplies of food and beverages meeting the regulatory criteria. For hotels, it can cover accommodation, supporting facilities and meeting or event space provided by hospitality businesses under the rules.

Government Regulation 35 of 2023 explains that the PBJT base is the amount paid by consumers. For food and beverages, the reference is payment received by the provider; for hospitality, payment to the hospitality service provider.

Who pays and remits PBJT?

Consumers bear PBJT economically. Restaurants or hotels collect it through bills, record it, remit it and file reports with the regency or city government.

As a regency or city tax, PBJT cannot use one administrative assumption across Bali. Badung, Denpasar, Gianyar, Tabanan and other locations must follow their respective local regulations and implementing rules.

For example, Badung Regency Regulation 7 of 2023 and Denpasar City Regulation 5 of 2023 govern their jurisdictions. Read them with applicable amendments, including Badung Regulation 8 of 2025 and Denpasar Regulation 2 of 2025. Check rates, turnover thresholds, procedures and reporting systems against the operating location and regulatory changes.

For broader taxable categories and mechanisms, read Bali hotel PBJT and Bali restaurant tax (Indonesian).

What Is Restaurant and Hotel Service Charge?

Service charge, or uang servis, is an additional charge for service. It is neither PBJT nor another term for VAT.

How do PBJT and service charge differ for workers?

For hotels and restaurants within hotels, Minister of Manpower Regulation 7 of 2016 defines service charge as an addition to established rates for services. It remains in force and provides for collected service charge to be used as follows:

• 3% for loss or damage risk.
• 2% for human resource quality improvement.
• 95% for distribution to workers.

The workers’ portion considers equitable distribution and service excellence. The official manpower explanation specifies 50% in equal shares, with the remainder based on seniority and performance.

Observe the scope: the regulation specifically covers hotels and restaurants within hotels. Do not automatically assume a standalone restaurant outside a hotel uses the same distribution scheme without reviewing company policies, employment agreements, company regulations and other relevant employment rules.

Does Service Charge Form Part of the PBJT Base?

This area often creates differences. Law 1 of 2022 and Government Regulation 35 of 2023 use the concept of the amount paid by the consumer as the PBJT base.

Where service charge is a mandatory invoice component required to complete the transaction, there is a strong basis to treat it as part of the payment before calculating PBJT. A calculation example from Jakarta’s revenue authority also adds service charge to the base before calculating PBJT.

However, an example from another jurisdiction does not replace Bali local regulations or revenue agency guidance. Review the regency or city rules, invoice format, mandatory or voluntary nature of the charge and existing reporting treatment.

A more defensible calculation sequence

Where service charge is mandatory, a generally more defensible sequence is:

1. Determine the post-discount value of food, beverages, rooms or services subject to PBJT.
2. Calculate service charge under the pricing policy.
3. Add it to the service value paid by the consumer.
4. Calculate PBJT on that payment base.
5. Show each component separately on the invoice.

How do PBJT and service charge differ on an invoice?

Suppose a hotel restaurant applies these charges:

This illustration assumes mandatory service charge and a 10% PBJT rate. Actual rates and treatment must follow the local regulation and revenue agency guidance where the business is registered.

Recording PBJT and Service Charge in the Books

Good recording goes beyond separate receipt lines. Each component needs a clear chart of accounts classification.

Separate three account groups

Consider separating:

• Room, food, beverage or operational service revenue.
• PBJT payable to local government.
• Service charge liabilities or funds whose use must be traced.

For hotels and restaurants within hotels, service charge records should show collected amounts, permitted deductions, the distribution basis, recipient lists and distribution dates. This is a control recommendation to adapt to company accounting policies.

Owners and investors should also ensure POS or PMS reports reconcile to:

• Gross sales and discounts.
• Service charge.
• PBJT collected.
• Refunds and voids.
• Cash and non-cash payments.
• OTA or reservation platform transactions.
• The general ledger and local tax reports.

If operational records cannot separate these components, consider Bali hotel tax reporting services for reconciliation and administrative review.

Mistakes Business Owners Should Avoid

Practices increasing correction risks include:

• Treating service charge as PBJT.
• Recording PBJT as company revenue.
• Calculating PBJT only on menu prices without reviewing mandatory service charge.
• Combining all components in one revenue account.
• Not retaining service charge distribution policies.
• Using another region’s rate without checking the location.
• Not reconciling invoices to POS, PMS, bank and PBJT reports.
• Assuming every restaurant follows the manpower distribution scheme for restaurants within hotels.

These errors can also affect investors’ operating profit assessments. Apparently high revenue may still contain PBJT and service charge that are not entirely the company’s economic entitlement.

Conclusion

PBJT and service charge can appear together, but have different purposes and treatment. PBJT is local tax borne by consumers and remitted by businesses. Service charge is an additional service fee requiring recording and use under relevant policies and rules.

Hotels and restaurants within hotels must also consider Regulation 7 of 2016. Where service charge is mandatory on the bill, a more defensible approach is to review its possible inclusion in the PBJT base, then confirm the position against the regulations and authorities of the operating regency or city.

Sources and References

The PBJT framework refers to Law 1 of 2022 governing central-regional financial relations and PBJT taxable categories.

The tax base and administration discussion refers to Government Regulation 35 of 2023 on General Provisions on Local Taxes and Levies.

Service charge provisions for hotels and restaurants within hotels refer to Minister of Manpower Regulation 7 of 2016.

The Bali context considers Badung and Denpasar local tax regulations. Always check the final position for the registered regency or city and rules applicable to the relevant tax period.

Review Your Business’s PBJT and Service Charge Calculations

Invoice formats, POS configuration, service charge policies and business locations can lead to different administrative treatment. Consultation lets owners review calculation bases, account separation and transaction-to-PBJT-report reconciliation.

Discuss your needs with Usman Tax through its Bali hotel tax reporting services to determine appropriate improvements for your operations and jurisdiction.

Read Also: Villa Owner Statements: Reconciling Fees, Costs and Tax Payments

FAQ PBJT and Service Charge in Bali Hotel Restaurants

Is PBJT the same as service charge?

No. PBJT is local tax paid by consumers; service charge is an additional service fee collected by the business. Fund recipients, legal bases and recording differ.

Must every hotel and restaurant apply service charge?

Not always. Regulation 7 of 2016 allows hotels and restaurants within hotels to apply it. Once applied and collected, its use must follow relevant requirements. Standalone restaurant policies and legal bases need separate review.

Is PBJT calculated after service charge?

Where service charge is mandatory within the consumer’s payment, there is a strong basis to include it before calculating PBJT. Final treatment must reflect the registered regency or city’s regulations and revenue agency guidance.

Who actually bears hotel and restaurant PBJT?

Consumers or guests bear it. Businesses collect, record, remit and report it to the regency or city government.

Where is hotel service charge distributed?

For businesses within Regulation 7 of 2016, 3% is allocated for loss or damage risk, 2% for human resource quality improvement and 95% for workers.

Is restaurant PBJT VAT?

No. Food and beverage PBJT is local tax. Food and beverages subject to local tax and meeting relevant criteria are generally not subject to VAT on the same transaction. Other services outside PBJT need separate analysis.

Are PBJT rates identical across Bali?

Not necessarily. The law sets rate limits, while actual rates, exemptions, procedures and technical provisions are determined by regency or city government. Use the regulation for the business location rather than a general Bali rate assumption.

How should PBJT be recorded?

Record collected PBJT as a local tax liability until remitted rather than operating revenue. Reconcile it to invoices, POS, PMS, bank records and tax reports.

How should hotel service charge be recorded?

Use separate accounts so amounts collected, used and distributed remain traceable. Account policies must reflect accounting standards, employment contracts, company policies and employment rules.

Which documents should be retained for PBJT and service charge reviews?

Keep invoices, POS or PMS reports, price lists, service charge policies, sales reports, payment evidence, accounting entries, PBJT reports, remittance evidence, service charge distribution lists and refund or void documents.