Restaurant taxation in Indonesia confuses even experienced F&B business owners. The source of confusion? Two taxes that sound similar but are fundamentally different: PPN and PB1. Get them wrong and you risk either overcharging customers or underreporting to the government. Neither is good.
PB1: Restaurant Tax (Pajak Restoran)
PB1 is a local tax collected by your municipal/regional government (Pemda). Key facts:
Rate: Up to 10% — varies by region. Jakarta charges 10%, some kabupaten charge 5%
Who pays: The customer pays it. You collect it on behalf of the government
Remittance: Monthly to your local Pemda
Scope: All food and beverage sold for consumption in-place (dine-in)
Exemption: Restaurants with annual revenue under Rp 200,000,000 may be exempt — check your specific region
PPN: Value Added Tax (Pajak Pertambahan Nilai)
PPN is the national VAT administered by DJP (Direktorat Jenderal Pajak):
Rate: 11% (since April 2022; planned increase to 12%)
Trigger: Only applies if your business is registered as PKP (Pengusaha Kena Pajak)
Threshold: PKP registration is mandatory once annual revenue exceeds Rp 4,800,000,000
Critical rule: PPN is NOT charged on top of PB1 — they are mutually exclusive for dine-in food
The Critical Distinction Most Get Wrong
This is where restaurants make expensive mistakes:
You cannot charge both PPN and PB1 on the same dine-in transaction. Ever.
Dine-in food & beverage → PB1 (not PPN)
Packaged products sold retail → PPN (if you're PKP)
Catering services → can be either, depending on business structure
Delivery orders → still subject to PB1 in most jurisdictions
How to Display Tax on Receipts
Best practice — and a compliance requirement in most regions — is to show tax as a separate line item. This builds customer trust. Your receipt should show:
Subtotal (pre-tax food + beverage total)
Tax line: "PB1 (10%): Rp XX,XXX"
Grand total
Never bury the tax inside your menu prices without disclosure. If your POS handles this automatically, that's one less thing to worry about.
Always consult with a tax professional for your specific situation. Makan's POS automatically handles PB1/PPN calculation, receipt display, and generates reports for your monthly filing.