Functionality, Reliability, and Effectiveness of Information Technology Services in Supporting VAT Administration

Authors

  • Petrus Hery Setyo Nuryantoro Swadaya Gunung Jati University
  • Irwan Sutirman Wahdiat Swadaya Gunung Jati Univercity
  • Aoliyah Firasati Swadaya Gunung Jati Univercity

DOI:

https://doi.org/10.55537/jistr.v4i3.1311

Keywords:

Information Technology Coretax Functionality, Reliability Effectiveness Value Added Tax

Abstract

This study addresses the persistent challenges faced by taxable entrepreneurs (PKP) in utilizing information technology (IT) for Value-Added Tax (VAT) compliance, including data inconsistencies, reporting delays, and uneven system optimization. The research emphasizes the unique value of integrating IT functionality, infrastructure reliability, and overall effectiveness to improve VAT administration. Data were collected from PKP in the Cirebon 3 region through questionnaires (offline and online) and direct interviews. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to measure the level of IT utilization and its effect on VAT compliance. The f indings reveal that IT functionality, reliability, and effectiveness are at a high level, indicating that IT has been successfully implemented in VAT administration. Input and output tax administration scores were also categorized as high, and regression analysis demonstrated a positive and significant impact of IT on VAT compliance, both partially and simultaneously. These results highlight the critical role of the government’s integrated Coretax system and PKP’s capacity to adopt and optimize IT solutions. The study contributes by showing that combining functionality, reliability, and effectiveness creates a comprehensive framework that enhances compliance and reduces administrative friction in VAT management.

Downloads

Download data is not yet available.

References

[1.] Setyowati, “Blockchain technology application for value-added tax administration,” Procedia Computer Science, vol. 176, pp. 2480–2487, 2020, doi: 10.1016/j.procs.2020.09.282.

[2.] A. Anderson, "Digital Competency and Tax Compliance," *VAT Journal*, vol. 15, no. 2, pp. 45–58, 2022

[3.] L. L. Simanjuntak and R. S. Sinaga, “The impact of IT infrastructure on taxpayer compliance,” Journal of Economics and Business, vol. 5, no. 2, pp. 45–53, 2021.

[4.] R. Angganis, I. Pahala, and H. Nasution, “Pengaruh Kompetensi Pemeriksa Pajak, Pemanfaatan Teknologi Informasi dan Pengalaman Pemeriksa Pajak terhadap Kualitas Pemeriksaan Pajak,” *Jurnal Ilmiah Akuntansi dan Humanika*, vol. 13, no. 1, pp. 93-101, Apr. 2023. DOI: 10.23887/jiah.v13i1.53920.

[5.] L. W. Chen and M. Z. Huang, “Digital technology reshapes the tax collection and administration system: Impacts, challenges, and future prospects,” Journal of Economics and Management Research, vol. 8, no. 2, pp. 55–70, 2024.

[6.] S. K. Das and N. Roy, “Assessing the challenges of digitalizing tax administration: A systematic literature review,” Global View of Economics and Social Sciences, vol. 13, no. 1, pp. 22–37, 2024.

[7.] F. Priyono, F. Nisa, and A. Dwijayanti, “Optimizing Indonesian tax collection with effectiveness and efficiency analysis through transformation,” Jurnal Ilmiah Pertapsi, vol. 7, no. 1, pp. 10–18, 2022.

[8.] T. Brown, “E-government systems and fiscal transparency,” Policy Studies Review, vol. 76, 2022.

[9.] S. K. Rahayu and A. Kusdianto, “Challenges of digital tax administration transformation in Indonesia,” IntechOpen, 2023. [Online]. Available: https://www.intechopen.com/chapters/86942

[10.] P. Andreana and I. Inayati, “Principles of tax collection in value added tax (VAT) on digital services in Indonesia,” Jurnal Public Policy, vol. 8, no. 1, pp. 33–42, 2022.

[11.] J. Clark, “Predictive analytics in public finance: Applications for tax enforcement,” Cambridge Tax Review, vol. 15, no. 1, pp. 89–97, 2021.

[12.] J. B. Slemrod, "Tax compliance and enforcement," NBER Working Paper No. 24799, Jul. 2018, doi: 10.3386/w24799.

[13.] J. Tantriangela and M. S. Setyowati, “Sharpening the concept of tax literacy as an effort to improve tax compliance,” Jurnal Akuntansi dan Bisnis, vol. 9, no. 1, pp. 30–42, 2023.

[14.] R. R. Dewi, A. Arif, S. M. Wibowo, E. Pujianthi, and M. Nadhifah, “Karakteristik pimpinan, inovasi, dan kesadaran kewajiban pajak perusahaan,” Jurnal Akuntansi dan Bisnis, vol. 8, no. 1, pp. 9–20, 2022.

[15.] Y. Fan and J. Liu, “Digitalization and tax compliance in informal economies,” International Tax Review, p. 1215, 2020.

[16.] M. Garcia, “Real-time reporting in VAT systems: A necessity for modern tax administration,” Tax Technology Review, vol. 12, no. 4, pp. 30–35, 2022.

[17.] I. P. Rismadhani and K. N. L. Chamalinda, “Modernization of tax administration through the implementation of tapping box in an effort to optimize tax compliance,” Jurnal Pajak dan Keuangan Negara, vol. 5, no. 1, pp. 1–11, 2024.

[18.] I. Primadini and G. Gunadi, “Analisis SWOT terhadap kebijakan pajak digital di Indonesia,” JRAP: Jurnal Riset Akuntansi dan Perpajakan, vol. 10, no. 1, pp. 33–47, 2023.

[19.] R. Pratiwi and S. Y. Maulidya, “The role of digital transformation in optimizing market reach and data management for SMEs,” FOKBIS: Jurnal Ilmiah, 2025, doi: 10.32639/dwnnxk92.

[20.] J. W. Lee and K. S. Lee, “Evaluating the functionality and reliability of tax information systems,” Journal of Information Technology Management, vol. 28, no. 3, pp. 34–48, 2017.

[21.] G. Johnson and K. Scholes, Exploring Strategy: Text and Cases, 12th ed. Pearson, 2024.

[22.] R. Johnson, “Big data and compliance systems in taxation,” Data Security Journal, vol. 65, 2020.

[23.] S. Tandiono, N. P. E. Pratiwi, Y. Yanty, and J. K. Tjahjono, “Perbandingan CORETAX Indonesia dengan MyTax Malaysia,” EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, vol. 4, no. 4, May 2025.

[24.] Septika and R. Tjandrakirana D. P., “Implementasi e Faktur dan e Billing dalam kepatuhan pajak: Kajian literatur sistematis,” JIMEA: Jurnal Ilmiah Manajemen Ekonomi dan Akuntansi, vol. 2, no. 3, pp. 135–143, May 2025.

[25.] A. C. Kamila, T. Nuryati, E. Rossa, D. P. Faeni, and Manrejo, “Pengaruh pemanfaatan teknologi informasi, pengetahuan perpajakan dan tarif pajak terhadap kepatuhan wajib pajak orang pribadi pengguna e-commerce di Bekasi,” SINOMIKA Journal, vol. 2, no. 4, 2023.

[26.] K. C. Laudon and J. P. Laudon, Management Information Systems: Managing the Digital Firm, 16th ed. Pearson, 2020.

[27.] G. Mascagni et al., “The VAT in practice: equity, enforcement, and complexity,” International Tax and Public Finance, vol. 30, pp. 525–563, Aug. 2023, doi: 10.1007/s10797-022-09743-z.

[28.] R. A. Lestari and S. Selfiani, “Pengaruh implementasi sistem coretax dan akuntabilitas terhadap transparansi perpajakan di Indonesia,” Jurnal Akuntansi, Keuangan, Pajak dan Informasi (JAKPI), 2025.

[29.] G. M. Azizi et al., “Analisis pengaruh digitalisasi dan dampak sistem informasi pajak terhadap akurasi dan transparansi pada pengelolaan pajak,” Kohesi: Jurnal Sains dan Teknologi, vol. 5, no. 11, pp. 81–90, 2024.

[30.] H. Mbise, “Digitalization of tax administration and compliance behavior among SMEs in Tanzania,” International Journal of Economics and Finance, vol. 10, no. 4, pp. 55–68, 2022.

[31.] S. Mbise, “Digital taxation and SMEs compliance: Evidence from Tanzania,” African Tax Journal, 2022.

[32.] H. Mallick and M. S. Setyowati, “Do governance quality and ICT infrastructure influence the effectiveness of digital tax administration?,” Journal of International Commerce and Economics, vol. 13, no. 1, pp. 1–20, 2021, doi: 10.2139/ssrn.3581692.

[33.] D. Miller, “Securing taxpayer data in cloud-based tax platforms,” Journal of Information Security, vol. 20, no. 3, pp. 45–52, 2023.

[34.] T. P. S. Zebua and R. J. Putra, “Pengaruh literasi pajak, pemanfaatan teknologi, dan kesadaran wajib pajak terhadap kepatuhan pajak UMKM dengan Coretax sebagai variabel moderasi,” Economics and Digital Business Review, vol. 6, no. 2, 2025.

[35.] T. Nguyen, “E-Tax systems in emerging economies: A case study of Southeast Asia,” Journal of International Taxation, vol. 19, no. 2, pp. 101–113, 2023.

[36.] J. A. O’Brien and G. M. Marakas, Management Information Systems, 10th ed. McGraw-Hill, 2011.

[37.] C. L. Cardenas-López, “Digital tax administration systems: A literature review in Scopus indexed journals,” Revista Científica de la Sociedad de Investigación en Ciencias Sociales y Humanidades (RCSI), vol. 3, no. 2, p. 525, 2023, doi: 10.51252/rcsi.v3i2.525.

[38.] M. F. Ramadhan and D. S. Hidayat, “The effectiveness of digitizing tax administration to reduce the compliance cost of taxpayers of MSMEs,” Jurnal Penelitian dan Pengembangan Administrasi (JPP), vol. 12, no. 3, pp. 45–56, 2023. [Online]. Available: https://www.researchgate.net/publication/xxxxxx

[39.] E. L. Minja and J. M. Kweka, “Role of information technology on value added tax compliance in Moshi municipality,” International Journal of Management and Leadership (IJML), vol. 9, no. 1, pp. 34–42, 2025.

[40.] B. Raspati et al., “Kontribusi fintech terhadap penerimaan dan kepatuhan pajak di Indonesia,” Journal of Macroeconomics and Social Development, 2024, doi: 10.47134/jmsd.v1i4.335.

[41.] A. Carrillo, D. Pomeranz, and M. Singhal, “Digitalization to improve tax compliance: Evidence from VAT e-invoicing in Peru,” Journal of Public Economics, vol. 206, p. 104590, 2022, doi: 10.1016/j.jpubeco.2022.104590.

[42.] A. R. Siahaan et al., “Knowledge, sanctions, and taxpayer compliance,” Journal of Accounting Research, 2020.

[43.] A. Singh, “E-Filing adoption and its impact on tax administration efficiency in developing countries,” Tax Policy Review, vol. 12, no. 1, pp. 85–90, 2021.

[44.] M. I. Al-Otaibi, “The impact of new VAT enforcement on financial performance in Saudi Arabia,” Journal of Financial Crime, vol. 31, no. 4, pp. 1182–1197, 2024, doi: 10.1108/JFC-02-2023-0042.

[45.] M. Singh, “E-filing and Tax Efficiency in Southeast Asia,” Asian Fiscal Review, p. 88, 2021.

[46.] J. M. Luna, R. Capasso, and T. S. Weller, “A conceptual framework for digital tax administration,” Government Information Quarterly, vol. 39, no. 4, p. 101711, 2022, doi: 10.1016/j.giq.2022.101711.

[47.] J. Smith and A. Johnson, “The impact of technological advancements on VAT compliance: A global perspective,” Emerald Group Publishing, 2022.

[48.] J. Smith and D. Johnson, “Technology-enabled VAT compliance: Lessons from global practices,” Journal of Tax Administration, vol. 8, no. 3, pp. 60–75, 2022.

[49.] S. Nasly, “PPN bukan solusi utama kerek pajak?,” LPEM FEB UI, 2024.

[50.] F. Effendi, V. Ratnawati, and Y. M. Basri, “Penentuan target, strategi dan faktor-faktor yang mempengaruhi optimalisasi pajak daerah,” Jati: Jurnal Akuntansi Terapan Indonesia, vol. 4, no. 2, pp. 95–116, Oct. 2021.

[51.] Y. G. Winata et al., “Application of data mining to taxpayers issuing fictitious tax invoice using classification techniques,” Scientax: Jurnal Kajian Ilmiah Perpajakan Indonesia, vol. 5, no. 1, pp. 58–73, 2023.

[52.] A. Darono, “Dealing with last-mile analytics: Evidence from Indonesian tax administration through practice research,” Scientax: Jurnal Kajian Ilmiah Perpajakan Indonesia, vol. 6, no. 2, pp. 107–123, 2025.

[53.] C. Kotsogiannis et al., “E-invoicing, tax audits and VAT compliance,” Journal of Development Economics, vol. 172, p. 103403, 2024.

[54.] A. Solehzoda, “Information technologies in the tax administration system of VAT,” Journal of Advanced Research in Law and Economics, vol. 8, no. 4(26), pp. 1340–1344, 2017.

[55.] J. J. Cardenas-López, “Digital tax administration systems: A literature review in Scopus (2012-2022),” Revista Científica de Sistemas e Informática, vol. 3, no. 2, e525, 2023.

[56.] M. Alm and A. El-Ghaish, “Technology adoption and VAT compliance: Evidence from developing countries,” International Journal of Public Administration in the Digital Age, vol. 11, no. 1, pp. 23–41, 2024.

[57.] A. Rukundo, “Digital transformation and tax compliance: Insights from VAT reforms,” eJournal of Tax Research, vol. 21, no. 2, pp. 55–78, 2023.

[58.] R. Owusu and K. Appiah, “Tax administration digitalization and revenue mobilization in Sub-Saharan Africa,” Journal of African Business, vol. 25, no. 3, pp. 401–420, 2024.

[59.] Y. Kim and D. Lee, “Information system quality and user satisfaction in tax e-filing: Implications for VAT compliance,” Government Information Quarterly, vol. 41, no. 1, 2024.

[60.] T. N. Cahyani and H. Triwarti, “The effect of electronic tax invoice implementation, tax return submission in the coretax system, and tax penalties on VAT compliance with taxpayer awareness as a mediating variable,” AMKOP Management Accounting Review, vol. 5, no. 2, pp. 727–743, 2025.

[61.] A. Alexopoulos et al., “A network and machine learning approach to detect value added tax fraud,” Scientific Reports, vol. 11, no. 1, p. 11811, 2021, doi: 10.1038/s41598-021-91268-4.

[62.] H. J. Huang and C. Xu, “The role of IT infrastructure in improving taxpayer compliance: Evidence from VAT administration,” Information Systems Frontiers, vol. 26, no. 4, pp. 2331–2348, 2024.

[63.] S. Hesami, H. Jenkins, and G. P. Jenkins, “Digital transformation of tax administration and compliance: A systematic literature review on e-invoicing and prefilled returns,” Digital Government: Research and Practice, vol. 5, no. 3, pp. 18:1–18:20, Sep. 2024, doi: 10.1145/3643687.

[64.] W. Tu, “Digital tax administration, investor risk perception, and stock return volatility,” Journal of Corporate Finance, vol. 75, p. 102758, May 2025, doi: 10.1016/j.jcorpfin.2025.102758.

[65.] A. K. Tiwari, Z. R. Marak, J. Paul, and A. P. Deshpande, “Determinants of electronic invoicing technology adoption: Toward managing business information system transformation,” Journal of Innovation & Knowledge, vol. 8, no. 3, p. 100366, 2023, doi: 10.1016/j.jik.2023.100366. (Studi: India)

[66.] S. A. Olaleye, I. T. Sanusi, O. A. Dada, and F. J. Agbo, “A bibliometric review of global visibility, impact and adoption of electronic invoicing: The past and the future,” Heliyon, vol. 9, no. 3, p. e13726, 2023, doi: 10.1016/j.heliyon.2023.e13726.

[67.] S. Hesami et al., “Digital Transformation of Tax Administration and Compliance: A Systematic Literature Review on E-Invoicing and Prefilled Returns,” in Proc. ACM, 2024, doi: 10.1145/3643687.

[68.] C. Kotsogiannis, L. Salvadori, J. Karangwa, and I. Murasi, “E-invoicing, tax audits and VAT compliance,” Journal of Development Economics, vol. 172, 103403, 2025, doi: 10.1016/j.jdeveco.2024.103403.

[69.] L. F. Vasconcelos et al., “Evidence from Brazil’s NF-e data: Big data applications for tax policy and economic analytics,” Working Papers & Journal Articles, 2022–2025.

[70.] A. K. Tiwari, Z. R. Marak, J. Paul, and A. P. Deshpande, “Determinants of electronic invoicing technology adoption: Toward managing business information system transformation,” Journal of Innovation & Knowledge, vol. 8, no. 3, p. 100366, 2023, doi: 10.1016/j.jik.2023.100366.

[71.] S. A. Olaleye, I. T. Sanusi, O. A. Dada, and F. J. Agbo, “A bibliometric review of global visibility, impact and adoption of electronic invoicing: The past and the future,” Heliyon, vol. 9, no. 3, p. e13726, 2023, doi: 10.1016/j.heliyon.2023.e13726.

[72.] S. Hesami et al., “Digital Transformation of Tax Administration and Compliance: A Systematic Literature Review on E-Invoicing and Prefilled Returns,” in Proc. ACM, 2024, doi: 10.1145/3643687.

[73.] C. Kotsogiannis, L. Salvadori, J. Karangwa, and I. Murasi, “E-invoicing, tax audits and VAT compliance,” Journal of Development Economics, vol. 172, 103403, 2025, doi: 10.1016/j.jdeveco.2024.103403. (Studi: Rwanda, Uganda, Uni Eropa)

[74.] J. F. Hair, C. M. Ringle, and M. Sarstedt, A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 3rd ed. Thousand Oaks, CA: Sage, 2021.

[75.] U. Sekaran and R. Bougie, Research Methods for Business: A Skill-Building Approach, 8th ed. Hoboken, NJ: Wiley, 2020.

[76.] J. W. Creswell and J. D. Creswell, Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, 5th ed. Thousand Oaks, CA: Sage, 2018.

Downloads

Published

2025-09-30

How to Cite

Hery Setyo Nuryantoro, P., Wahdiat, I. S., & Firasati, A. (2025). Functionality, Reliability, and Effectiveness of Information Technology Services in Supporting VAT Administration. Journal of Information Systems and Technology Research, 4(3), 187–201. https://doi.org/10.55537/jistr.v4i3.1311

Similar Articles

1 2 3 4 5 6 > >> 

You may also start an advanced similarity search for this article.