Reformulating the Subject of Value Added Tax (VAT) in the Digital Era in Indonesia

• Dr. Bonarsius Sipayung, S.E., M.Ak
• 2026
• Perpajakan

This book responds to a fundamental shift in Value Added Tax (VAT) that occurs when supply, payment, customer data, and control over the transaction no longer rest with a single actor. The digital economy does not abolish the principle of VAT as a tax on final consumption; rather, it changes which party is best placed to identify the place of consumption, collect the tax, issue supporting documentation, make corrections, and account for the transaction.

The discussion is directed toward a functional reformulation of the VAT subject, which requires distinguishing between the material supplier, the deemed supplier, the administrative collector, the reporting intermediary, the customer who fulfills its obligations on a self-assessment basis, the jointly and severally liable party, and the consumer as the economic bearer of the tax. These distinctions are intended to prevent gaps, double collection, breaks in the input VAT credit chain, and the imposition of obligations on parties that lack the necessary data or control.

The analysis combines normative legal, comparative, economic, institutional, tax administration, and technological approaches. The experience of the OECD and several other jurisdictions serves as a functional benchmark rather than as a model to be transplanted mechanically. Its ultimate focus remains on the Indonesian context and the principle of legality.