Indonesian Journal of Accounting and Financial Technology

Analysis of the Effectiveness of the Value Added Tax (VAT) Collection System on Taxpayer Compliance in Indonesia

2026-06-02T01:12:36+00:00

Tax revenue is a key driver of national development, yet achieving its targets is often hampered by fluctuating levels of public compliance. To address this challenge, digital transformation through modernizing administrative systems such as the implementation of e-Filing and e-Billing plays a crucial role in bureaucratic reform efforts. This reform is specifically designed to minimize maladministration, reduce compliance costs, and improve the integrity of the tax system. Although the technological infrastructure is in place, its implementation cannot operate independently. Therefore, this literature review aims to analyze in-depth the effectiveness of the synergy between tax technology adoption and taxpayers' intrinsic awareness. Using a qualitative descriptive approach, analyzing various empirical data and the latest academic literature, this study confirms consistent findings. It found that infrastructure modernization and increased taxpayer awareness, when driven simultaneously, have a positive and significant impact on increasing taxpayer compliance. Digital systems have proven effective in minimizing procedural obstacles, long queues, and bureaucratic complexity that often discourage taxpayers from reporting. On the other hand, because our tax system relies on a self-assessment mechanism, tax literacy is the main pillar or foundation that truly shapes the public's voluntary compliance. No matter how good the facilities provided, their effectiveness will decline if not balanced with user literacy. In conclusion, achieving effective tax revenue targets cannot rely solely on one aspect. A real balance is needed between providing adequate digital infrastructure and efforts to build taxpayer awareness and literacy. These educational efforts must be consistently implemented to foster a culture of tax compliance that is deeply rooted in society

Finding a Way Out: Overcoming the Administrative Maze in National Tax Services

2026-05-12T07:53:27+00:00

The taxation sector is a main pillar in the structure of state revenue that demands high efficiency; in reality, taxpayers are often trapped in the complexity of procedures resembling an administrative labyrinth. Digital transformation through the Core Tax Administration System (CTAS) becomes a new hope in simplifying the tax business processes in Indonesia. The aim of this study is to analyze the anatomy of the tax bureaucracy that hinders service efficiency, assess the economic impact of administrative complexity on state revenue, and formulate simplification strategies through advanced information technology integration. The administrative labyrinth is caused by unsynchronized regulatory structures and manual bureaucratic processes that have not been fully digitally integrated. The complexity of the system not only increases operational costs for taxpayers but also creates psychological barriers that damage the relationship between the state and society (social contract). The implementation of the Core Tax Administration System (CTAS) is a crucial step that is effective in cutting redundant bureaucracy. However, the effectiveness of this technology must be accompanied by regulatory simplification so that the digital system does not merely 'transfer' manual complexity into a digital form, but truly simplifies the substance of the tax

Qualitative Analysis of Regional Tax Shortfall in Lampung Province Post-Tax Opsen Regulation Reform

2026-05-15T01:36:14+00:00

This study investigates the systemic and behavioral determinants of the regional tax revenue shortfall in Lampung Province following the implementation of the new piggyback tax system under the Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah regulation. Using a descriptive qualitative case study approach, the research explores how the shift to an automated split payment mechanism altered the financial reporting landscape at the subnational level. The analysis reveals that the deficit was primarily an administrative artifact of unrealistic budget forecasting, driven by political pressures to maintain balanced ledgers. Additionally, the study examines the behavioral consequences of recurring tax amnesties, which fostered a moral hazard among taxpayers, prompting them to strategically delay payments. The paper highlights the critical need for a net-basis revenue projection model and robust institutional cooperation to ensure subnational fiscal sustainability

Taxes as a Key Pillar of Indonesia's Fiscal Stability: A Review of the 2022-2024 State Budget

2026-05-13T08:04:11+00:00

Tax revenue remains the main source of state revenue and continues to be the fiscal backbone of Indonesia's APBN. This study aims to analyze the contribution of tax revenue to Indonesia's 2024 APBN and to compare it, in a limited way, with the 2022-2023 period. The study applies a descriptive quantitative approach using secondary data drawn from APBN documents, Ministry of Finance publications, and relevant journal articles. The analysis was conducted through data tabulation, contribution ratio calculation, and interpretation of tax revenue trends. The results show that 2024 tax revenue realization reached IDR 1,931.6 trillion, or 97.12 percent of the target, with a contribution of 67.76 percent to total state revenue. This share is higher than in 2022 and 2023, confirming that Indonesia's APBN remains highly dependent on tax performance. These findings imply the need to strengthen the tax base, improve compliance, and continue tax administration reform

The Paradox of Taxation in Indonesia: High Targets, Low Realization

2026-05-12T08:33:30+00:00

While taxes are the backbone of national development, Indonesia faces a significant gap between high targets and low realization. This qualitative study finds that low compliance, a large informal sector, incentive policies, and administrative weaknesses are the primary drivers of this paradox. Strengthening taxpayer compliance and reforming the administrative system are essential to optimize state revenue sustainably

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

2026-05-12T08:05:37+00:00

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

The Effect of Asset Planning, Asset Valuation, and Asset Supervision on the Quality of Financial Statements at the Department of Industry, Trade, Cooperatives, Small and Medium Enterprises of DKI Jakarta Province

2026-05-28T06:21:09+00:00

This study looks at the effects of asset planning (X1), asset valuation (X2), and asset supervision (X3) on the DKI Jakarta Industry, Trade, Cooperatives, and SMEs Department's 2024 financial report quality (Y). Purposive (judgment) sampling was used to choose a sample of one hundred employees. Multiple linear regression was used to evaluate the data, along with t-tests, F-tests, coefficient of determination, and validity, reliability, and classical assumption tests using SPSS. With an R2 of 72.2%, the results demonstrate that every variable has a favorable and significant impact, both separately and together. Asset supervision is the most influential of these. In order to improve the quality of financial reporting, these findings emphasize the significance of enhancing planning, carrying out frequent valuations, and enhancing oversight through internal controls

The Role of Luxury Goods Sales Tax (PPnBM) in Controlling Consumption and Achieving Social Justice in Indonesia

2026-05-15T01:32:46+00:00

This study examines the role of Luxury Goods Sales Tax (PPnBM) in controlling consumptive behavior and promoting social justice in Indonesia. The study employs a qualitative descriptive approach using secondary data from government regulations, academic journals, and fiscal policy reports published between 2021–2026. PPnBM functions not only as a source of state revenue but also as an instrument to regulate excessive luxury consumption and reduce social inequality. The findings indicate that the implementation of PPnBM contributes to behavioral control in upper-class consumption patterns while supporting fiscal redistribution through tax revenue allocation. Furthermore, PPnBM reflects the principle of vertical equity in taxation policy by imposing higher tax burdens on individuals with greater purchasing power. The study suggests that optimizing PPnBM policy requires adaptive regulations, improved supervision, and alignment with socioeconomic conditions in Indonesia

The Illusion of Digital Tax Convenience: Analyzing the Cognitive Gap of MSMEs towards the e-NPWP System in Bandar Lampung

2026-05-13T04:06:32+00:00

This study aims to determine the level of understanding of MSME actors regarding e-NPWP in Bandar Lampung City. The background of this study is based on the importance of tax administration for MSMEs and the development of digital tax services, including the emergence of e-NPWP as a form of digital tax identity. This study used a descriptive quantitative approach involving 40 MSME actors selected through purposive sampling. Data were collected through questionnaires distributed via Google Form and analyzed descriptively using frequencies, percentages, and response tendencies. The results show that most respondents had heard of e-NPWP and understood that e-NPWP is the digital form of NPWP and has a function in tax administration. Respondents’ understanding of the use of e-NPWP for administrative purposes was also fairly good. However, understanding of how to obtain or access e-NPWP was still low. Information about e-NPWP was considered quite clear by most respondents, but this was not fully followed by practical ability to use the service. This study concludes that the level of understanding of MSME actors regarding e-NPWP in Bandar Lampung City is still not optimal, especially in the technical aspects of access and use

Regressive Impact Analysis of the 12% VAT Policy on the Structure of Indonesian Household Consumption

2026-05-12T08:25:25+00:00

This study aims to analyze the regressive impact of the 12% Value Added Tax (VAT) policy on household consumption structure in Indonesia. VAT, as a consumption-based tax, is often considered regressive because it places a relatively higher burden on low-income households. This research uses a descriptive qualitative approach through literature review and secondary data analysis from previous studies and official statistics. The results indicate that the increase in VAT leads to a decline in purchasing power, particularly among lower-income groups, and causes shifts in consumption patterns from secondary to primary goods. Furthermore, the policy potentially exacerbates economic inequality due to unequal tax burden distribution. This study contributes by providing a more comprehensive understanding of how VAT policy affects household consumption structure and highlights the importance of equitable fiscal policy design