Public Benefit Principle in Regulating E-Commerce Tax on Consumer’s Location in Indonesia

Abstract

The value of e-commerce transactions in Indonesia which is always increasing, in addition to contributing to the general welfare of the people, must also face challenges and complexities that affect tax revenue. Until now, the benefit of e-commerce transactions in the tax sector has not yet been ascertained, such as tax revenue for the achievement of e-commerce transactions in 2019 which has reached USD 40 billion, and the number of traders and buyers who already have a Taxpayer Identification Number and or have reporting tax obligations. Based on a literature review within the framework of sociological jurisprudence by using the theory of expediency, two conclusions are generated. First, special regulations governing e-commerce tax do not currently exist in Indonesia, beyond the general rules contained in Government Regulation Number 80 the Year 2019 on Trade Through Electronic Systems which still has limitations in handling the challenges and complexity of e-commerce taxes. Second, the e-commerce tax regulation on consumer's location based on the principle of public benefit in Indonesia must be done through simplifying the requirements, simplifying the imposition and payment of taxes, and simplifying the information system and technology for taxpayers conducting e-commerce transactions. It is proposed that the DGT regulates the imposition of e-commerce tax directly deposited by consumers in Indonesia with the notification of the seller of goods and or e-commerce platforms through the application of a simple and secure online tax payment system.