a.

that to provide fairness, legal certainty and alignment of taxable objects between central taxes and local taxes, it is necessary to stipulate provisions on criteria and/or details of food and beverages, arts and entertainment services, hotel services, car park services and catering services, which are not subject to value added tax;

1.

Article 17 paragraph (3) of the 1945 Constitution of the Republic of Indonesia;

MINISTER OF FINANCE REGULATION CONCERNING THE CRITERIA AND/OR DETAILS OF FOOD AND BEVERAGES, ARTS AND ENTERTAINMENT SERVICES, HOTEL SERVICES, CAR PARK SERVICES AND CATERING SERVICES NOT SUBJECT TO VALUE ADDED TAX.

 

Referred to here in this Minister of Finance Regulation:

1.

Value Added Tax Law is Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods and the amendments thereto.

2.

Value Added Tax is a tax collected pursuant to the Value Added Tax Law.

3.

Taxable Services are services subject to Value Added Tax.

4.

Entrepreneur is any individual or entity in whatever form that in the course of business or work produces goods, imports goods, exports goods, conducts trading business, utilises intangible goods from outside the customs territory, conducts service businesses, including exporting services or utilises services from outside the customs territory.

5.

Minister is the minister who administers governmental affairs in the field of state finances.

 

 

Food and beverages served:

a.

in hotels;

b.

in restaurants, eateries, grocery shops and the like; and

c.

by catering service Entrepreneurs,

which constitute taxable objects of local taxes and user charges pursuant to statutory provisions in the local taxes and user charges sector are included in the types of goods not subject to Value Added Tax.

 

Certain services in the group of:

a.

arts and entertainment services;

b.

hotel services;

c.

car park services; and

d.

catering services,

which constitute taxable objects of local taxes and local pursuant to statutory provisions in the local taxes and user charges sector are included in the types of services not subject to Value Added Tax.

 

(1)

Food and beverages referred to in Article 2 include food and beverages that are either utilised on the premises or not.

(2)

Restaurants, eateries, grocery shops and the like referred to in Article 2 letter b at least provide the serving of food and/or beverages services in the form of providing tables, chairs and/or utensils for eating and drinking on the premises.

(3)

Catering service Entrepreneurs referred to in Article 2 letter c at least conduct the following services:

 

a.

the process of providing raw materials and work-in-process, manufacture, storage and serving based on orders;

 

b.

serving on the premises desired by the customer and different from the location where the manufacturing and storage processes are carried out; and

 

c.

serving is carried out with or without utensils and staff.

(4)

Not included as food and beverages referred to in Article 2 are food and beverages provided by:

 

a.

Entrepreneurs of supermarkets and the like that do not solely sell food and/or beverages;

 

b.

Manufacturers of food and/or beverages; or

 

c.

Entrepreneurs providing facilities whose main business is providing lounge services at airports.

(5)

Food and beverages referred to in paragraph (4) are subject to Value Added Tax.

 

 

(1)

Certain services in the group of arts and entertainment services that are not subject to Value Added Tax referred to in Article 3 letter a include:

 

a.

films or other forms of audio-visual spectacle shown live at certain locations;

 

b.

performing arts,concerts, dance performances and/or fashion shows;

 

c.

beauty contests;

 

d.

bodybuilding contests;

 

e.

exhibitions;

 

f.

circus, acrobatics and magic shows;

 

g.

horse racing and automobile racing;

 

h.

carnival games;

 

i.

sports games using the place/space and/or equipment and supplies for sports and fitness;

 

j.

recreational water rides, ecological rides, educational rides, cultural rides, snow rides, game rides, fishing, agro-tourism and zoos;

 

k.

massage and reflexology parlours; and

 

l.

discotheques, karaoke, nightclubs, bars and sauna or spa.

(2)

Not included as arts and entertainment services referred to in paragraph (1) are:

 

a.

the provision of place/space and/or equipment and supplies for golf games services; and

 

b.

supplies of digital services in the form of film or other audio visual streaming through internet channels or electronic networks.

(3)

Arts and entertainment services referred to in paragraph (2) are subject to Value Added Tax.

 

 

(1)

Certain services in the group of hotel services not subject to Value Added Tax referred to Article 3 letter b include room rental services and/or space rental services in:

 

a.

hotels;

 

b.

hostels;

 

c.

villas;

 

d.

tourist lodges;

 

e.

motels;

 

f.

budget hotels;

 

g.

tourist hostels;

 

h.

lodgings;

 

i.

inns, guest houses, bungalows, resorts or cottages;

 

j.

private residences functioned as hotels; and

 

k.

glamping.

(2)

Room rental services include accommodation and supporting facilities referred to in paragraph (1), including additional facilities and related facilities for staying guests.

(3)

Additional facilities referred to in paragraph (2) are supporting facilities that are directly related to room rental services, which may be in the form of room service, air conditioning, laundry and dry cleaning, extra bed, furniture and fixtures, telephone, safety box, internet, satellite/cable television and minibar.

(4)

Related facilities for staying guests referred to in paragraph (2) are facilities that are directly related to room rental services and are only intended for staying guests, which may be in the form of sports and entertainment, photocopying, telex, facsimile and hotel transportation facilities.

(5)

Space rental services referred to in paragraph (1) are rental services for events or meetings.

(6)

Not included as hotel services referred to in paragraph (1) are at least in the form of:

 

a.

space rental services other than for events or meetings at hotels, hostels, villas, tourist lodges, motels, budget hotels, tourist hostels, lodgings, inns and the like, private residences functioned as hotels or glamping referred to in paragraph (2) may be in the form of space rental for automated teller machines (ATMs), offices, banking, restaurants, entertainment venues, karaoke, pharmacies, retail outlets and clinics;

 

b.

unit and/or space rental services, including the additions thereto and other related supporting facilities, in apartments, condominiums and the like; and

 

c.

travel agency or travel services organised by hotel service management.

(7)

Hotel services referred to in paragraph (6) are subject to Value Added Tax.

(8)

Exclusions for unit and/or space rental services, including the additions thereto and other related supporting facilities, in apartments, condominiums and the like, referred to in paragraph (6) subparagraph b of the group of hotel services not subject to Value Added Tax, are based on the business license.

 

 

(1)

Certain services in the group of car park services not subject to Value Added Tax referred to in Article 3 letter c include:

 

a.

the provision or operation of car parks; and/or

 

b.

valet parking.

(2)

Not included as car park services referred to in paragraph (1) are at least in the form of car park management services.

(3)

Car park management services referred to in paragraph (2) are subject to Value Added Tax.

(4)

Car park management services referred to in paragraph (2) are services performed by car park management Entrepreneurs to manage car parks owned or provided by the car park owner, by receiving remunerations from the car park owner, including remunerations in the form of profit sharing.

 

 

Certain services in the group of catering services not subject to Value Added Tax referred to in Article 3 letter d constitute services that fulfil the provisions referred to in Article 4 paragraph (3).

 

When this Ministerial Regulation comes into force:

a.

Minister of Finance Regulation Number 122/PMK.03/2012 concerning the Criteria for Car Park Services Included in Types of Services Not Subject to Value Added Tax (Official Gazette of the Republic of Indonesia of 2012 Number 719);

b.

Minister of Finance Regulation Number 18/PMK.010/2015 concerning the Criteria for Catering Services Included in Types of Services Not Subject to Value Added Tax (Official Gazette of the Republic of Indonesia of 2015 Number 162);

c.

Minister of Finance Regulation Number 43/PMK.010/2015 concerning the Criteria and/or Details of Hotel Services Not Subject to Value Added Tax (Official Gazette of the Republic of Indonesia of 2015 Number 361); and

d.

Minister of Finance Regulation Number 158/PMK.010/2015 concerning the Criteria for Arts and Entertainment Services Not Subject to Value Added Tax (Official Gazette of the Republic of Indonesia of 2015 Number 1190),

are revoked and declared invalid.

 

This Ministerial Regulation shall come into force on 1 April 2022.

 

For public cognisance, this Ministerial Regulation shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

Enacted in Jakarta

on 30 March 2022

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

signed

SRI MULYANI INDRAWATI

 

Promulgated in Jakarta

on 30 March 2022

DIRECTOR GENERAL OF LEGISLATION

MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,

signed

BENNY RIYANTO

 

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2022 NUMBER 370