Regulation Update
Already Been Local Taxes, These Foods and Beverages and Services Are Not Subject To VAT

MUC Tax Research Institute | Thursday, 07 April 2022

Already Been Local Taxes, These Foods and Beverages and Services Are Not Subject To VAT
Ilustrasi makanan, minuman dan jasa-jasa yang tidak dipungut PPN. (Photo: Pixabay/Pexels)

In line with the increase in the Value Added Tax (VAT) rate to 11% starting April 2022, Minister of Finance Sri Mulyani Indrawati reaffirmed the list of food, beverages, and certain services whose taxation is the domain of the Regional Governments.

This affirmation is contained in the Minister of Finance Regulation (PMK) Number 70/PMK.03/2022 which was promulgated on 30 March 2022 and at the same time revoked the previous four related PMKs.

Read: Rate Rises, Minister of Finance Releases List of 11 Transactions of Value Added Tax Object

The following is a list of food and beverages, as well as services that are subject to local taxes and are automatically exempt from VAT:

1. Food and drinks served by:

  • hotel;
  • restaurants, food stalls, and the like;
  • catering service entrepreneurs

2. Arts and Entertainment Services

  • On-site film/audiovisual performance
  • Performing arts/music/dance/fashion
  • Beauty contest
  • Bodybuilding contest
  • Exhibition
  • Circus, acrobatics, and magic shows
  • Horse racing and motor vehicles
  • Dexterity game
  • Sports game
  • Recreational facilities
  • Massage and reflexology
  • Discotheque/karaoke/nightclub/bar/sauna & spa

3. Hospitality Services 

  • room rental
  • accommodation provision
  • other additional facilities:
  • room service
  • air conditioning
  • laundry
  • extra bed
  • furniture
  • phone
  • safe
  • Internet
  • cable television
  • mini-bar
  • photocopy
  • Teletext
  • facsimile
  • hotel transportation

4. Parking Service

  • Provision or organizer of parking spaces
  • Vehicle parking service (valet)

The hospitality services mentioned in this regulation are the rental of rooms, the provision of accommodation, additional or other related facilities provided by hotels, hostels, villas, and the like, including luxury campsites (glamping) and private houses that function as hotels.


However, the following types of service transfer are exempted from local tax objects which are automatically subject to VAT:

  1. Services for providing golf game venues and equipment;
  2. Transfer of digital services in the form of streaming films and other audio-visual shows;
  3. Rental of units or rooms that are intended as an Automated Teller Machine (ATM), office; banking, restaurants, entertainment venues, karaoke, pharmacies, retail stores, and clinics;
  4. Rental of units or rooms such as apartments, condominiums, and the like;
  5. Travel agency services organized by hotels; and
  6. Parking management services.
PMK No. 70/PMK.03/2022 tentang Kriteria dan/atau Rincian Makanan dan Minuman, Jasa Kesenian dan Hiburan, Jasa Perhotelan, Jasa Penyediaan Tempat Parkir, serta Jasa Boga atau Katering, yang Tidak Dikenai Pajak Pertambahan Nilai


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