Most countries in the world use Value Added Tax (VAT) as a source of state revenue. Similarly in Indonesia, VAT is the second largest source of state revenue after Income Tax. However, the level of formal compliance is relatively small and tends to decline. This study aims to investigate the effect of supervision activities of Tax Authorities on VAT compliance in Indonesia. The study used a regression model by analyzing the panel data of all taxpayers registered in the VAT system (Pengusaha Kena Pajak) in Indonesia in the period of 2013 to 2017. The results showed that the supervision efforts carried out by the tax authorities through audits significantly increased taxpayer compliance.
|Title of host publication||Challenges of the Global Economy|
|Subtitle of host publication||Some Indonesian Issues|
|Publisher||Nova Science Publishers, Inc.|
|Number of pages||17|
|Publication status||Published - 1 Jan 2019|
- Tax compliance