VAT Tax in Bali

Bali has an array of restaurant taxes that are a reflection of the rest of the tax system. Most locals on Bali don’t pay personal tax, unless they earn and declare over 1m rp per month. Businesses do pay tax, but most ‘cook the the books’, declaring way less than they earn. I know this because business owners have told me.

For a tourist this may be of little interest except that bars and restaurants charge sales tax. Sales tax in restaurants ranges from – 10% – 15% – 21%. This depends on class of restaurant not area, with fancier places whacking on more tax. A service charge of 5% is also sometimes added.

Ika told me that if a place calls itself a ‘warung’ it doesn’t pay tax, and the size of the sign outside has something to do with how much they pay too. Navigating the logic of all this is beyond me. I know that Warung 96 charges 10% tax.

Tax is not charged on goods bought in a shop, although with alcohol and cigarettes tax is included in price. When you are picking up supplies at Circle K or Matahari, what you see is what you get as far as pricing. If you go to a upmarket restaurant, expect tax and service to be added and check the bottom of the menu befor you order to see exactly how much.