Optimizing Income Tax and Value Added Tax on E-Commerce Transaction

Abstract

Indonesia has had declining tax revenue for the past two years. This research aimed to analyze how to optimize income tax and VAT on e-commerce transactions. This research was a qualitative and literature study review. Data came from international tax regulation practices on e-commerce transactions. Findings confirmed that tax imposition on e-commerce and conventional transactions were similar. It is necessary to create legal certainty and comprehensive tax regulation on e-commerce transactions. The government needs to evaluate taxable e-commerce transactions as an embodiment of fair regulation. This research provides a theoretical contribution for taxation on ecommerce transactions to increase tax basis.