PAJAK PERTAMBAHAN NILAI (PPN)

Abstract

One of the key fiscal instruments that contributes significantly to Indonesia’s government revenue is the Value-Added Tax (VAT). This study aims to provide an in-depth analysis of the VAT collection system, examine the challenges encountered during its implementation, and evaluate its impact on taxpayers and the economy as a whole. This study combines insights from scientific publications, official government documents, and relevant empirical data using a qualitative approach based on a literature review and analysis of policy documents. The findings indicate that although Indonesia’s VAT system has undergone a number of regulatory improvements, several structural issues remain, including a regressive burden on low-income groups, administrative complexity, disparities in taxpayer compliance, and significant tax refund claims. In addition, there is an ongoing debate regarding the trade-off between increasing government revenue and preserving public purchasing power due to the gradual increase in the VAT rate, which is planned to rise from 10% to 11% in 2022 and subsequently to 12%. To ensure a more resilient and sustainable tax system in Indonesia, this study concludes by highlighting the need for comprehensive VAT reform, which includes streamlining processes, broadening the tax base, and implementing protective measures for vulnerable groups.