Proceedings of the International Conference on Sustainable Innovation on Humanities, Education, and Social Sciences (ICOSI-HESS 2022)

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The Effect of Changes in the Value-Added Tax Rate on Tax Compliance Behavior of Taxpayers in Indonesia: A Field Experiment

Authors
Agustine Dwianika1, *, Badingatus Sholikah2
1Faculty of Humanities and Business, Universitas Pembangunan Jaya, Banten, Indonesia
2Faculty of Economic and Business, Universitas Negeri Semarang, Semarang, Indonesia
*Corresponding author. Email: agustine.dwianika@upj.ac.id
Corresponding Author
Agustine Dwianika
Available Online 24 December 2022.
DOI
10.2991/978-2-494069-65-7_3How to use a DOI?
Keywords
Tax compliance; VAT Rate; Taxpayers; Indonesia; Field Experiment
Abstract

Increasing the value-added tax (VAT) rate has been identified as an option to increase tax revenue although the possible effect of changing the VAT rate on tax compliance behavior has not been determined. It is planned that the value added tax (VAT) rate will increase on April 1, 2022. The amount of the increase is from 10 percent to 11 percent. The increase in VAT rates follows the passage of Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (UU HPP). While the HPP Law itself regulates the increase in VAT to 11 percent as of April 1, 2022, then it will be followed by an increase to 12 percent no later than January 1, 2025. The purpose of this VAT rate increase is an effort to increase tax revenue and create equality in tax payments. However, most people do not easily accept the 11 percent VAT rate increase.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Sustainable Innovation on Humanities, Education, and Social Sciences (ICOSI-HESS 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
24 December 2022
ISBN
978-2-494069-65-7
ISSN
2352-5398
DOI
10.2991/978-2-494069-65-7_3How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Agustine Dwianika
AU  - Badingatus Sholikah
PY  - 2022
DA  - 2022/12/24
TI  - The Effect of Changes in the Value-Added Tax Rate on Tax Compliance Behavior of Taxpayers in Indonesia: A Field Experiment
BT  - Proceedings of the International Conference on Sustainable Innovation on Humanities, Education, and Social Sciences (ICOSI-HESS 2022)
PB  - Atlantis Press
SP  - 17
EP  - 23
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-65-7_3
DO  - 10.2991/978-2-494069-65-7_3
ID  - Dwianika2022
ER  -