Blockchain technology application for value-added tax systems

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35 Citations (Scopus)

Abstract

The utilization of new technology in the form of blockchain technology for a Value Added Tax (VAT) acceptance system is relatively new and has not been widely encountered thus far. This research analyzes how blockchain technology can be applied to a VAT system, particularly for electronic invoices (e-Invoice). A qualitative approach was used in this study to analyze blockchain technology models that could be applied in a VAT system. The results of this study indicate that due to its characteristics, blockchain technology can only be applied to taxpayer data that do not require privacy. Data that are considered safe if distributed to nodes in the blockchain technology network include the Tax Invoice Serial Number (TISN). A TISN system based on blockchain technology will produce a faster and more efficient system. Transactions on the TISN in Indonesia can also be monitored and tracked directly by the Directorate General of Taxation (DGT). Blockchain technology can be applied in the TISN system by using a permissioned private blockchain type.

Original languageEnglish
Article number156
Pages (from-to)1-27
Number of pages27
JournalJournal of Open Innovation: Technology, Market, and Complexity
Volume6
Issue number4
DOIs
Publication statusPublished - Dec 2020

Keywords

  • Blockchain technology
  • E-Invoices
  • Taxation
  • Value Added Tax (VAT)

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