Taxing Electronic Commerce Cross-Border Transaction: Discussing the Alternative Models for Indonesia

. The advancement of technology and e-commerce has created a new problem in taxation policy. Most countries, including Indonesia, face the tendency of tax avoidance practices as e-commerce practices can bypass states' territorial boundaries. In Indonesia, the government has only constructed a regulation to control internal e-commerce practices through Over-the-Top (OTT) regulation draft, without paying attention to the possibility of cross-border transaction tax avoidance practices. This paper focuses on the discussion of alternate models in facing cross-border e-commerce transaction, namely Base Erosion Approach, Virtual Permanent Establishment Approach, and Refundable Withholding Approach. By highlighting the models, this paper discusses advantages and challenges of each approach and how Indonesia could use the alternate models.