Reformulating the Value Added Tax (VAT) Mechanism in Addressing the Challenges of Digitalization in Indonesia

• Dr. Bonarsius Sipayung, S.E., M.Ak
• ISBN 978-634-05-5289-8
• 2026
• Perpajakan

Amid the rapid digital transformation taking place across the world, Indonesia is no exception. The digital economy continues to grow swiftly, spanning a wide range of sectors, from e-commerce and fintech to far-reaching platform-based digital businesses. These changes have created an urgent need to reformulate tax mechanisms so that the existing system remains relevant, effective, and capable of accommodating increasingly complex digital transactions. One critical aspect that demands immediate attention is the VAT mechanism, one of the principal sources of state revenue. VAT as applied in the physical world cannot, of course, be applied in its entirety to the digital world without adjustment. Accordingly, this book examines in detail the challenges facing the VAT system in the digital world, as well as the reformulation measures needed to address them.

This book aims to offer a clearer perspective on the dynamics of VAT in Indonesia’s digital era and to put forward concrete recommendations for updating existing tax policies and mechanisms. It is hoped that the book will provide valuable insights for stakeholders—whether in government, business, academia, or the general public—on how we can adapt to developments in the digital economy without sacrificing the principles of fairness and sustainability in tax administration.