Analysis of the Implementation of Value Added Tax (VAT) on      E-Commerce Transactions in Indonesia

Aina Muawanah; Shifa Aulia Intan Soraya; Zaki Pahlevi; Mega Metalia; Ratna Septiyanti

Authors

Aina Muawanah University of Lampung
Shifa Aulia Intan Soraya University of Lampung
Zaki Pahlevi University of Lampung
Mega Metalia University of Lampung
Ratna Septiyanti University of Lampung

Keywords:

Value Added Tax, E-Commerce, Digital Tax, Tax Compliance, Tax Administration

Abstract

This study analyzes the implementation of Value Added Tax (VAT) on e-commerce transactions in Indonesia using a qualitative descriptive approach through systematic literature review. Data were obtained from tax regulations, Directorate General of Taxes reports, and indexed journals from 2018–2024. Findings reveal that despite adequate regulatory frameworks through PMK 48/2020 and the Tax Harmonization Law No. 7/2021, VAT implementation faces structural barriers including low taxpayer compliance among digital SMEs, limited supervisory capacity, and cross-border transaction complexities. This study recommends an integrated policy approach leveraging digital technology and international cooperation to optimize VAT revenue from Indonesia's rapidly growing e-commerce sector

References

Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3–4), 323–338. https://doi.org/10.1016/0047-2727(72)90010-2

Australian Taxation Office. (2023). GST on digital products and services from overseas. https://www.ato.gov.au

Badan Pusat Statistik. (2023). Statistik e-commerce Indonesia 2023. https://www.bps.go.id

Bain & Company, Google, & Temasek. (2023). e-Conomy SEA 2023: Advancing towards a new era. https://economysea.withgoogle.com

Direktorat Jenderal Pajak. (2023). Laporan tahunan Direktorat Jenderal Pajak tahun 2023. Kementerian Keuangan Republik Indonesia. https://www.pajak.go.id

European Commission. (2021). VAT One Stop Shop: New EU rules for e-commerce. Publications Office of the European Union. https://ec.europa.eu/taxation_customs

Fischer, C. M., Wartick, M., & Mark, M. M. (1992). Detection probability and taxpayer compliance: A review of the literature. Journal of Accounting Literature, 11, 1–46.

HM Revenue & Customs. (2022). Making Tax Digital: An overview of the programme. UK Government.

Inland Revenue Authority of Singapore. (2023). GST: Taxing imported services. https://www.iras.gov.sg

International Monetary Fund. (2020). Tax administration responses to COVID-19: Measures taken to support taxpayers. IMF Policy Tracker. https://www.imf.org

Kementerian Keuangan Republik Indonesia. (2020). Peraturan Menteri Keuangan Nomor 48/PMK.03/2020 tentang Tata Cara Penunjukan Pemungut, Pemungutan, dan Penyetoran, serta Pelaporan Pajak Pertambahan Nilai atas Pemanfaatan Barang Kena Pajak Tidak Berwujud dan/atau Jasa Kena Pajak dari Luar Daerah Pabean di Dalam Daerah Pabean Melalui Perdagangan Melalui Sistem Elektronik. Berita Negara RI Tahun 2020 Nomor 602.

Kementerian Keuangan Republik Indonesia. (2021). Undang-Undang Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan. Lembaran Negara Republik Indonesia Tahun 2021 Nomor 246.

Kirchler, E. (2007). The economic psychology of tax behaviour. Cambridge University Press. https://doi.org/10.1017/CBO9780511628238

OECD. (2017). International VAT/GST guidelines. OECD Publishing. https://doi.org/10.1787/9789264271401-en

OECD. (2019). The role of digital platforms in the collection of VAT/GST on online sales. OECD Publishing. https://doi.org/10.1787/role-digital-platform-VAT-GST-en

Rahayu, S. K. (2022). Perpajakan: Konsep, sistem, dan implementasi (Edisi revisi). Rekayasa Sains.

Tait, A. A. (1988). Value added tax: International practice and problems. International Monetary Fund.

Turban, E., Whiteside, J., King, D., & Outland, J. (2018). Introduction to electronic commerce and social commerce (4th ed.). Springer. https://doi.org/10.1007/978-3-319-58715-8

Undang-Undang Nomor 42 Tahun 2009 tentang Perubahan Ketiga atas Undang-Undang Nomor 8 Tahun 1983 tentang Pajak Pertambahan Nilai Barang dan Jasa dan Pajak Penjualan atas Barang Mewah. (2009). Lembaran Negara Republik Indonesia Tahun 2009 Nomor 150.

Waluyo. (2021). Perpajakan Indonesia (Edisi ke-12). Salemba Empat.