IS THE APPLICATION OF DIGITAL TAX APPROPRIATE? : CONSIDERING THE POTENTIAL AND CHALLENGES OF DIGITAL TAX IMPLEMENTATION IN THE MIDDLE OF A PANDEMIC

Abstract

There is a change in the consumption pattern of the Indonesian people from purchasing products offline to being online. Items such as people's needs, clothes, cellphones, and beauty products are the people's favorite items. So it is not surprising that Indonesia is a country with the largest digital economic potential in the ASEAN region. In Indonesia itself, the digital economy is growing rapidly every year, even during the pandemic, Google, Temasek, and Bain (2020) in the E-Conomy SEA 2020 report stated that there was an additional 37 percent of consumers using digital services in Indonesia and the second highest in the country. Southeast Asia after Vietnam. In addition, Indonesian people also shop online twice as much in 2020-2021 as before the pandemic. The purpose of this activity is to be able to understand the potential and challenges of implementing digital taxes in the midst of a pandemic. The implementation methods used are 1). Exposure and counseling methods; used to convey material in the form of theory. 2). Question and answer method; used to provide opportunities for participants who are not clear in their understanding. The result of the implementation of this activity is the understanding of the participants on the potential and challenges of implementing digital taxes in Indonesia with recommendations for digital taxation policies that need to be reviewed by evaluating various important aspects, including the bilateral economic aspect with certain countries. Another aspect is the accuracy of transaction data as the main measuring instrument for the validity of state tax revenues.