Bank as a Value Added Tax (VAT) Collector: A Real-time Solution for Improving VAT Collection in Digital Economy - A Case Study in Indonesia

Hadining Kusumastuti

2019

Abstract

The raising of digital economic transactions poses its challenges for the Government of Indonesia (GoI) in taxing digital transactions, especially in the Value Added Tax (VAT) collection mechanism. The sustainability of VAT as a valid source of income is very dependent on the ability of GoI to enforce the rules and collect VAT effectively on the transaction concerned or has the potential to be subject to VAT. Several studies have been conducted by involving Financial Institutions as third parties appointed as VAT Collectors by utilizing the development of technology platforms. This paper focuses on the study of the possibility of involving the bank as a Financial Institution acting as a VAT Collector in Indonesia involving digital transactions in terms of the ease of administration principle. The research methodology uses descriptive analysis, data collection obtained from documentation studies and literature reviews. The results of the discussion indicate that technology platform readiness is needed to facilitate the appointment of the Bank as VAT collector and the potential imposition of VAT collection fees on the bank’s customers.

Paper Citation

in Harvard Style

Kusumastuti H. (2019). Bank as a Value Added Tax (VAT) Collector: A Real-time Solution for Improving VAT Collection in Digital Economy - A Case Study in Indonesia. In Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE, ISBN 978-989-758-530-2, pages 9-13. DOI: 10.5220/0010026400002967

in Bibtex Style

@conference{icvhe19,
author={Hadining Kusumastuti},
title={Bank as a Value Added Tax (VAT) Collector: A Real-time Solution for Improving VAT Collection in Digital Economy - A Case Study in Indonesia},
booktitle={Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE,},
year={2019},
pages={9-13},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010026400002967},
isbn={978-989-758-530-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE,
TI - Bank as a Value Added Tax (VAT) Collector: A Real-time Solution for Improving VAT Collection in Digital Economy - A Case Study in Indonesia
SN - 978-989-758-530-2
AU - Kusumastuti H.
PY - 2019
SP - 9
EP - 13
DO - 10.5220/0010026400002967