The effect of the supervision activities of tax authorities on VAT compliance in Indonesia

Dhian Adhetiya Safitra; Sartika Djamaluddin

The effect of the supervision activities of tax authorities on VAT compliance in Indonesia

Dhian Adhetiya Safitra, Sartika Djamaluddin

Department of Economics

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

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.

Original language	English
Title of host publication	Challenges of the Global Economy
Subtitle of host publication	Some Indonesian Issues
Publisher	Nova Science Publishers, Inc.
Pages	353-369
Number of pages	17
ISBN (Electronic)	9781536165357
ISBN (Print)	9781536162769
Publication status	Published - 1 Jan 2019

Keywords

Audit
Tax compliance
VAT

Cite this

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AB - 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.

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BT - Challenges of the Global Economy

PB - Nova Science Publishers, Inc.

ER -

The effect of the supervision activities of tax authorities on VAT compliance in Indonesia

Abstract

Keywords

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