Hotel tax and service charge in Bali: how to show them clearly
Guests in Bali often see a price on an OTA and a different total at check-out. Most of that difference is hotel tax and service charge. Showing both clearly avoids complaints and bad reviews.
What guests pay on top of the room price
Hotels and villas in Bali commonly charge around 10% hotel tax, known locally as PB1, a regional tax on hotel and restaurant services. Many properties also add a service charge, which is often 5 to 10% and is usually shared with staff. Together this is why you often see prices described as "++" in Indonesia.
Rates, rules and how they apply to your business type can differ and can change. This guide is about presenting the charges clearly, not about tax rules. Always confirm the correct rates and obligations with your accountant or the local tax office before you set up your prices.
Where confusion starts
The most common problem is inconsistency. Your Booking.com rate includes tax, your Agoda rate excludes it, your direct price on WhatsApp is a round number, and the invoice at check-out shows yet another total. Each figure may be correct, but the guest sees four different prices for the same room.
Another problem is the order of calculation. Some properties calculate tax on the room price only, others on the room price plus service charge. Agree with your accountant which method applies to you, then use it everywhere.
A third source of confusion is rounding. Percentages applied to rupiah amounts produce odd totals, such as IDR 1,155,000 instead of a round figure. Decide how you round, apply it consistently, and make sure your invoice and your OTA rates use the same logic. Small rounding differences are harmless, but guests notice when the amount on the invoice does not match the confirmation in their inbox.
A clear way to show it
- Decide inclusive or exclusive. Choose whether your published prices include tax and service charge. Inclusive prices are easiest for international guests to understand.
- Configure each OTA the same way. In each extranet, check whether rates are entered including or excluding taxes, and make sure the guest sees the final amount before booking.
- Say it on your booking page. State next to the price whether tax and service charge are included. One short line removes most questions.
- Show each line on the invoice. Room price, service charge, hotel tax and total, each on its own line, in rupiah.
- Treat extras the same way. Restaurant, breakfast, minibar and transfers may carry tax and service charge too. Apply the same logic when they go onto the room bill.
- Keep the numbers for your accountant. A monthly report of room revenue, service charge and tax collected makes the tax return much easier.
Invoices guests understand
A good invoice answers the guest's question before they ask it. It shows the stay dates, the nightly price, any extras, the service charge and tax as separate lines, deposits already paid and the balance due. If the guest paid 30% when booking and 70% on arrival, both payments should be visible.
In Sojodesk, invoices can be made for the full amount or as a 30/70 split and sent by email, and extras like breakfast or restaurant orders can go onto the room bill with the restaurant add-on. Whatever tool you use, check one complete invoice with your accountant before using it for every guest.
Train your front desk to explain the bill in one or two sentences. Most questions at check-out come from guests who saw a lower price on an OTA app and did not notice whether it included tax. A friendly explanation, together with a clear invoice, usually settles it. If the same question comes up often, check whether one of your OTA listings shows prices differently from the others.
Common questions
Is service charge required in Bali?
Service charge is a policy choice of the property, not a tax. Whether and how you charge it, and how it is shared with staff, is something to confirm with your accountant and local labour rules.
Should OTA prices include tax?
Many properties choose inclusive prices because guests compare totals. Whatever you choose, make sure the final amount is visible to the guest before they book.
What does "++" mean on a price?
In Indonesia, "++" means the price excludes both tax and service charge, which will be added on the bill. A "nett" price includes them.
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