The 21% on an Indonesian hotel bill is a 10% service charge plus a 10% regional hotel tax. The tax is charged on the room rate plus the service charge, which is why it comes to 21% rather than 20%.
How it is worked out
- Service charge is 10% of the room rate.
- Hotel tax is 10% of the room rate plus the service charge.
A worked example
| Room rate | IDR 1,000,000 |
|---|---|
| Service charge 10% on 1,000,000 | IDR 100,000 |
| Hotel tax 10% on 1,100,000 | IDR 110,000 |
| Total | IDR 1,210,000 |
What to watch for
- Hotel tax here is the regional tax on hotels and restaurants, known as PB1 or PHR and now also called PBJT. It is not VAT (PPN). Rates are set by each region.
- The service charge is set by the property rather than the government, so it varies. Some properties charge 5% and some more than 10%.
Doing this in Zitlin
Add a tax under Settings with Service Charge first and Hotel Tax second, and tick the box that charges Hotel Tax on the price plus the components above. The invoice then prints the hotel tax as charged on the higher figure.
Frequently asked questions
Why is Indonesian hotel tax and service 21% and not 20%?
Because the 10% hotel tax is charged on the room rate plus the 10% service charge. On IDR 1,000,000 the service charge is 100,000 and the tax is 10% of 1,100,000, which is 110,000. Together that is 210,000, or 21%.
Is the 10% tax on a hotel bill in Indonesia VAT?
No. It is a regional hotel and restaurant tax, known as PB1, PHR or PBJT, not the national VAT (PPN).
Does Zitlin work this out on the invoice?
Yes. Set the hotel tax to charge on top of the service charge and every invoice follows, including tax-inclusive prices. Invoicing is on the free plan.
Sources
- Jakarta100bars: tax and service in Indonesia
- Emerhub: tax obligations for hospitality in Bali
- Softinn: hotel tax in Indonesia
Checked November 2026. This is a guide rather than tax advice, and rates change. Confirm yours with your regional tax office (BAPENDA) or your accountant.