7301 Views |
Restaurant owners are likely familiar with the Restaurant Tax (PB1), which must be collected from customers. The PB1 is applied to services provided by restaurants, eateries, cafeterias, food stalls, and catering services. Before the recent increase in the Value-Added-Tax (VAT) rate, the PB1 rate coincidentally matched the VAT rate, which is 10%.
In many cases, the similarity in tax rates has led restaurant owners to mistakenly assume that the tax they collect is VAT. Consequently, when the VAT rate increased to 11% on 01 April 2022, some restaurant owners also raised the Restaurant Tax they applied to 11%.
The Directorate General of Taxes (DJP) has reiterated, particularly to restaurant owners, that the Restaurant Tax (PB1) rate remains at 10%, and food and beverages sold in restaurants are not subject of VAT.
Differences Between Restaurant Tax (PB1) and Value-Added-Tax (VAT)
Key differences between restaurant tax (PB1) and VAT you need to know:
a) Type of Tax
The first distinction between PB1 and VAT lies in the type of tax. PB1 is a local tax, meaning it is managed by the Regional Government (Pemda) and allocated for regional needs. On the other hand, VAT is a national tax, managed by the Central Government through the Ministry of Finance and used for the country's overall needs.
b) Tax Object
According to the Regional Tax and Levy Law (UU PDRD), the object of PB1 is the service provided by restaurants, which includes the sale of food and beverages consumed by customers, whether consumed on-site (dine-in) or taken away (take-out).
According to the Value-Added-Tax Law (UU PPN), the tax object of VAT includes the transfer of Taxable Goods (BKP) and Taxable Services (JKP) within the Customs Area, the import of BKP, and the utilization of intangible BKP and JKP within the Customs Area, and are carried out by entrepreneurs with Pengusaha Kena Pajak (PKP) status.
c) Tax Subject
A tax subject is an individual or entity that holds rights and obligations in taxation. The tax subject for PB1 is the restaurant business owner, while the tax subject for VAT is the entrepreneur who has been registered with PKP status.
d) Tax Rate
Previously, the rates for PB1 and VAT were similar, which was 10%. However, as of 01 April 2022, the VAT rate increased to 11%, while the PB1 rate remains at 10% as of the date of this article.
Are you using the appropriate tax rate for your business? Should you need tax consultant services in Bali, do not hesitate to contact us.
Right Now Consulting is tax consultant in Bali who is focusing to help individuals and businesses with their Accounting and Taxation matters. Right Now Consulting provides accounting / bookkeeping, tax consultant / taxation, and company formation / incorporation / setup services (CV / PT / PT PMA).
