Understand PB1 Rates or Restaurant Tax That Restaurant Owners Must Know – Here’s Why!

Do you have a culinary business? If so, don't miss understanding PB1 is taxes that must be paid by food and beverage business owners. 

PB1 or Certain Goods and Services Tax is imposed on services provided by restaurants, cafes and other eating places.

Well, do it For those who have just entered the world of culinary business, knowing the PB1 rate is the first step to managing finances well. 

This tax is borne directly by the customer, but as a business owner, you must report it and remit it to the local government. If you are late or don't pay, get ready to be fined!

How much is the PB1 rate? This is the explanation!

Each region has its own rules regarding PB1 tax. However, in general, PB1 rates are as big as 10% of total transactions paid by customers. So, if a customer eats with a total bill of IDR 200,000, then the tax is IDR 20,000.

Now, there are exceptions! If your restaurant's turnover is still below a certain limit set by the local government, you can be free from PB1. Therefore, it is very important to check the regulations in the area where your business operates.

Read Also: Example of Billing and Payment Invoices for Your Business

Why is Restaurant PB1 a Tax that Must Be Complied with?

Many business owners consider the PB1 tax an additional burden. In fact, if managed well, this can actually make the business more trustworthy. Here are some reasons:

1. Increase Business Credibility

Tax-compliant restaurants are more trusted by customers. This could be an added value for building customer loyalty.

2. Avoid Tax Penalties

If you are late or don't pay PB1, you could be subject to a fairly large fine. Don't let your restaurant profits run out to pay fines!

3. Helping Regional Development

PB1 goes directly into regional treasuries and is used for infrastructure development and public services. So, you also contribute to the progress of the city where your business is located.

How to Calculate and Pay PB1 Tax

Source: MRB Finance

So that you don't get confused, here are the steps to calculate and pay PB1:

1. Calculate Tax from Each Transaction

If the total income this month is IDR 50 million, then the tax that must be paid is 10% of that amount, namely IDR 5 million.

2. Report Taxes to the Regional Government

You must report your taxes every month to the relevant department. Usually, this can be done online or directly at the regional tax office.

3. Pay Taxes on Time

Don't be late, OK! The government sets the deadline for payment of PB1 tax on a certain date every month. Check the regulations in each area.

Read Also: Understanding Fixed Costs and Their Important Role in Business

How to Manage PB1 So It Doesn't Disrupt Business Finances

Many business owners have difficulty managing PB1 because they make financial recording errors. So, here are some ways to prevent PB1 from giving you a headache:

1. Separate Taxes from Income From the Start

Once the customer pays, immediately separate 10% for tax so that it is not used for other purposes.

2. Use an Integrated POS System

With a POS system that records every transaction automatically, you can easily calculate taxes without fear of missing something.

3. Carry out financial records neatly

Don't just rely on manual receipts. Use accounting software that can help record income and taxes in detail.

Conclusion

If you want your restaurant business to be more efficient, ESB POS is the solution! This system not only records transactions, but also supports various payment methods and makes it easier to calculate PB1 automatically, you know! 

Don't let the PB1 tax become an obstacle to your business! Use ESB POS now and enjoy the convenience of managing your restaurant digitally.