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Publica: Jurnal Pemikiran Administrasi Negara P-ISSN 2085-6555
Vol 15 No. 1 | Maret 2023: 40-55 E-ISSN 2715-9256
===========================================================================
Nurul Hafifah & Gunadi
Implementation of Value Added Tax Policy In E-Commerce Shopee
40
Implementation of Value Added Tax Policy In E-Commerce Shopee
1Nurul Hafifah, Gunadi
1Universitas Indonesia, Indoensia; Nurul.hafifah@ui.ac.id
Received: November 23, 2022; In Revised: February 13, 2023; Accepted: March 13, 2023
Abstract
Value Added Tax or Tax on Consumption is a tax imposed as a result of the delivery of taxable
goods (BKP) or taxable services (JKP) in the customs area which is carried out with added value.
The self-assessment tax collection system in Indonesia affects the VAT system by crediting or
payment methods. This is related to the increasing number of online sales through e-commerce
media in Indonesia, one of which has a significant effect on the drastic increase in revenue is
Shopee. The purpose of this study is to determine the implementation of the existing VAT policy
in e-commerce Shopee and what are its effects on the State. The method used in this research is
qualitative with a literature study approach, the results of this study are that since the
implementation of the Shopee collection in early 2020 until now, internal socialization is needed
to business actors both those who already have a TIN and those who do not. Both the macro
industry and micro MSMEs, so that the implementation of the policy of charging VAT to
consumers will not affect service quality, satisfaction, and the number of requests through Shopee
e-commerce. In addition, it is supported by a policy from Shopee which confirms that his
appointment as a trade value added tax (VAT) collector through the electronic system (PMSE)
according to PMK 48/2020 will not affect the selling price of goods.
Keywords: Policy Implementation, Technology, Internet, VAT, E-commerce
Introduction
Technology has an impact on buying and selling activities which are increasingly
experiencing modernization. With the internet, consumers can more easily access information on
various products, services and competitive prices. E-commerce is a sale or purchase activity that
is carried out via the Internet with a certain method with the intention of receiving and sending
orders. Furthermore, it allows goods or services to be ordered and delivered conventionally
(indirect or offline e-commerce) or through a fully electronic delivery system (direct or online e-
commerce). E-commerce makes transactions between one place and another possible without
physical interaction. This is how e-commerce has become one of the most preferred ways of
shopping today.
Through the use of the Internet, e-commerce actors can market their products
internationally simply by creating a website or by placing advertisements on internet sites 24 hours
without limits, so that customers from all over the world can access the site and make transactions
online. Sellers and buyers in e-commerce transactions do not meet face to face. The seller does not
Publica: Jurnal Pemikiran Administrasi Negara P-ISSN 2085-6555
Vol 15 No. 1 | Maret 2023: 40-55 E-ISSN 2715-9256
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Nurul Hafifah & Gunadi
Implementation of Value Added Tax Policy In E-Commerce Shopee
41
need the buyer's name as long as the payment system provider has authorized the payment.
Products such as computer software, music, and other digital products can be marketed
electronically via download. and Many companies engaged in e-commerce offer intangible goods,
such as software data and ideas that are sold over the Internet. The arrival of the internet has had
a dramatic effect on business and has ongoing implications for management's approach to business
processes and endeavors. This opens up new market possibilities and opportunities, but inevitably
brings with it significant new areas of risk.
As a comparison, data from the Ministry of Finance of the Republic of Indonesia stated
that digital economic conditions in Indonesia are predicted to increase in 2030, digital economic
growth will grow eight times from Rp. 632 trillion to Rp. 4,531 trillion. In this case, e-commerce
will be the biggest source of influence, namely around 34% or a total of IDR 1,900 trillion. One
of the e-commerce that has a major impact on increasing GMV (Gross Domestic Value) is USD
14.2 billion and controls the market by up to 37% in Indonesia according to the Momentum Works
Blooming Ecommerce in Indonesia report, namely Shopee, which recorded a gross transaction of
USD 14.2 Billion out of a total of USD 40.1 billion GMV (Gross Domestic Value) in Indonesia in
2021. Shopee is an e-commerce from Singapore that has succeeded in dominating the online
market in Indonesia with the number of website visits per month, which is around 391 million
visits in 2020.
Figure 1. E-Commerce Site Monthly Visitors (Quarter III)
Source: iPrice, Kuartal III 2020 (databoks)
Indonesia does not yet have regulations related to e-commerce taxes specifically so that
trading activities carried out online are not much different from ordinary buying and selling
transactions, where online payment systems and product orders that are carried out virtually
without face to face are a significant difference to central conventional spending, this causes the
income earned to be not much different from the type of activity or the difference in other jobs,
the only difference is the media used in promoting or marketing the product being sold.
96,5
85
31,4
22,7 18,7
4,8 3,1 2,8 2 1,8
0
20
40
60
80
100
120
Juta
Shopee Tokopedia Bukalapak Lazada Blibli
JD ID Orami Bhinneka Sociolla Zalora
Publica: Jurnal Pemikiran Administrasi Negara P-ISSN 2085-6555
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Nurul Hafifah & Gunadi
Implementation of Value Added Tax Policy In E-Commerce Shopee
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However, the development of the digital economy is characterized by a lack of
territoriality and global possibilities of reaching customers, meaning companies will also be
subject to VAT obligations in some countries and there will be uncertainty over their tax
obligations related to transactions they have made with or without using online platforms. Indeed,
telesales and services supplied via digital platforms have offered both small and non-entrepreneurs
the opportunity to supply their own goods and services to a much wider audience of potential
customers located worldwide. However, this potential business use of the Internet has also
undermined the possibility of implementing and enforcing VAT rules. First of all, private
individuals may not recognize they are liable to pay taxes. This means that there are many potential
private individuals with relatively small tax rates (depending on the case by case) who offer goods
and/or services online, but who may not be aware of tax and administrative obligations. In addition,
because we are talking about many individuals and a low number it may be difficult for the tax
authorities (which do not have all the necessary information) to find out which business is being
conducted by those private persons. The second risk is related to (foreign) entrepreneurs who do
not register. In terms of selling goods remotely, the expectation is that Small Businessmen/Taxable
Entrepreneurs who trade via online platforms will remain out of the sight of the tax authorities as
oversight is quite difficult.
Third, problems may arise from online platforms with multiple activities and various
VAT taxation agreements on transactions (eg; application of different tax rates, provision of
exempt goods and services together with other goods and services that are not). An additional risk
concerns the online sale of imported low value goods. According to a recent OECD report because
many jurisdictions exempt low-value packages from online sales from VAT, the administrative
costs associated with collecting VAT on goods may be greater than the VAT that will be collected.
Thresholds vary between jurisdictions but due to the increasing volume of low-value goods that
are not subject to VAT, this has resulted in decreased VAT receipts and unfair competitive pressure
on VAT-imposed domestic retailers. Ultimately, this might lead to incentives for domestic
suppliers to move to offshore jurisdictions to sell goods of value VAT-free.
In the context of e-commerce, there are many reasons why it is beneficial for the State to
involve platforms in VAT collection. Platforms have information about all transactions that occur
through them. Moreover, in most of the cases, payment is through the platform. Finally, as stated
in the OECD Report 2019 the reliance on digital platforms for VAT collection can also be
motivated by the fact that digital supply chains are often long and complex, and suppliers within
this chain may not be aware of the roles of various parties in the chain. An approach relying on
digital platforms to collect and deposit the tax payable on the final supply to the end customer is
expected to provide an efficient solution for tax administrations and the experience of the
jurisdictions that have adopted this model seems to support and confirm that expectation.
The Director General of Taxes noted that e-commerce trade VAT tax revenue in the first
quarter of 2021 reached Rp. 1,647.1 billion, which in quantity has increased by 125.2% from the
previous time, this was calculated in the period from July to December 2020 with a rupiah value
of 915.7 billion. Several studies on the “substitution” effect assume that consumers who adapt to
one shopping channel will abandon other channels (Ansari et al., 2008; Mehra et al., 2013). The
increasing popularity of online shopping will make customers "migrate" from physical stores to
online (Couclelis, 2004; Visser & Lanzendorf, 2004; Weltevreden & Rotem-Mindali, 2009; Zhang
et al., 2016). In this case, online platforms compete with physical stores as a channel to realize
product/service sales. This is largely the impact of the emergence of the Covid-19 pandemic which
Publica: Jurnal Pemikiran Administrasi Negara P-ISSN 2085-6555
Vol 15 No. 1 | Maret 2023: 40-55 E-ISSN 2715-9256
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Nurul Hafifah & Gunadi
Implementation of Value Added Tax Policy In E-Commerce Shopee
43
forced people to make transactions from home, so that more and more users accessing e-commerce
will also increase according to increasing economic needs and the ease of service obtained causes
consumers to be more eager to access services. e-commerce rather than making transactions
directly outside the home. This is also supported by staying at home policy issued by the
government to implement distance restrictions and public spaces in the community.
Normally, we can expect platforms to be allowed to rely on information they have access
to or to which they can reasonably be expected to have access when making such distinctions. In
addition, the latest OECD report states that where a digital platform, acting in good faith and
having made reasonable efforts to obtain appropriate evidence, is unable to establish its customer
status, the presumption may be applied that the customer is not the customer's business, in this
case the rules for B2C supplies will apply. Measures may include for example, provision by the
customer of a registration number or VAT identification that has been shown to be invalid (for
example by viewing a list of online entrepreneurs provided by the tax authority), digital platforms
may assume that the customer is a non-business and apply rules for B2C supply. In contrast, digital
platforms may operate under the assumption that the underlying suppliers selling through their
platforms are businesses unless they have information to the contrary. Key elements of information
that may be considered for determining the tax treatment of such transactions may include:
customer status nature of supply, elements for determining the applicable tax collection or VAT
collection regime (eg. IP address), thresholds of exemption for registration and/or collection
purposes VAT, supply value and applicable VAT rate and the point at which VAT liability is
incurred.
Covid-19 has been present in Indonesia since the beginning of 2020, Nanda & Zhang,
(2021) in their research stated that the impact of the COVID-19 pandemic on retail real estate and
the highway landscape through accelerated e-commerce and digitalization. The retail business has
evolved over the last few decades, emphasized by the evolution and development of digital
technologies. Almost all parts of the world have witnessed changes in consumer behavior, the
nature of retail, and the reshaping of the high street landscape due to the e-commerce revolution
and its continuous expansion. Especially due to the COVID-19 pandemic, retail platforms powered
by digital technology have had to adapt quickly, and it is hoped that they will continue to support
these changes as consumers and retailers adjust to the new normal. In addition, retail real estate is
closely related to the dynamics of the retail sector. While lockdown measures and social distancing
are having a devastating impact on the “traditional” retail property sector, they can accelerate the
evolutionary process of multi-channel retail and the channel integration role of physical stores and
thereby, bring about a transformation in the urban retail landscape. This does not necessarily lead
to the end of the street shop, but may have a significant impact on the retail real estate business.
Disasters and crises have a major impact on consumption behavior, among others
(Ballantine et al., 2014; Larson&Shin, 2018; Pantano et al., 2020; Sheu & Kuo, 2020). With the
sizeable growth of online shopping and food delivery spending during the pandemic, it is very
possible that this new shopping behavior can become the new normal after the pandemic. The most
significant change in shopping behavior is centered around online grocery shopping. Trading
transactions carried out online raise the problem of collecting the same tax as conventional traders,
if you look further, the circulation of money in online buying and selling transactions is very large,
giving rise to problems regarding tax collection between conventional and online systems, in this
handled seriously by the government so as not to cause social inequality in terms of tax collection
for both conventional and e-commerce traders. If only e-commerce players are given relief in terms
Publica: Jurnal Pemikiran Administrasi Negara P-ISSN 2085-6555
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Nurul Hafifah & Gunadi
Implementation of Value Added Tax Policy In E-Commerce Shopee
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of income tax or value added tax, it is feared that gaps and injustice will emerge in the positive
law that applies in Indonesia on the taxation aspect which has indicators of significant differences
in terms of carrying out transactions but still selling services, the same goods, only differ in the
media used in selling.
Figure 2. Average Monthly Visiotrs to Shopee Site (Quarter 1-III)
Source: iPrice, Kuartal III 2021 (databoks)
The characteristics of fast e-commerce transactions, crossing boundaries between state
jurisdictions make it difficult to identify taxpayers involved in e-commerce, determine taxpayer
tax jurisdiction, identify electronic vs. physical products, lack of audit trails, lack of system
controls, and electronic payment systems. This challenge requires policy makers to not only focus
on national e-commerce business regulations, but also a comprehensive digital taxation regulatory
framework that responds to cross-border transactions, the pace of market changes, business
models, and consumer tastes. Considering that e-commerce and the digital economy are also under
the supervision of several related sectors, it is necessary to coordinate and harmonize cross-
ministerial laws and policies in the process of drafting laws and regulations which become the
legal basis for e-commerce activities. in particular and dealing with the development of business
models in the digital economy era in general. The development of digital content in Indonesia is
closely related to the entry of the internet for the first time (Purbo, 2014).
Prior to the PMSE VAT collection policy, the Indonesian government had actually issued
a Minister of Finance regulation regarding e-commerce. In 2018, the Ministry of Finance
formulated with the enactment of PMK-48/PMK.03/2020 it can be seen that the Indonesian
government makes VAT on PMSE transactions as one of the solutions to explore tax potential in
the digitization of the economy. This relates to the understanding of cashless payment instruments
which is the main part for determining direction, who is the buyer or provider of goods and services
absolutely understood by every tax authority. The pattern of cross-agency collaboration is a means
of providing adequate tax data. The UN in the United Nations Model Double Taxation Convention
0
20
40
60
80
100
120
140
160
Juta
Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021
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Nurul Hafifah & Gunadi
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(2011) states in article 25 that "The competent authority in a country is obliged to exchange
information that is deemed relevant in carrying out the completeness of the agreement, regarding
all types and explanations of taxes provided as long as they do not conflict with the agreement,
especially information is exchanged so that it can help other countries to prevent tax evasion”. In
addition, he explained that the majority of e-commerce currently use electronic money in their
payment transactions. As for electronic money transactions in the first half of this year, it managed
to grow 41 percent to132 trillion of Rupiahs, so that the whole year is estimated to reach 278
trillion of rupiahs.
Table 1
Mechanism of VAT Based on Payment Method
No Payment
Method
Procurement Mechanism Control
1 Credit Card Direct Deposit Using SSP Direct supervison of the perpetrators of
utilization activities
2 Direct Carrier
Billing
Collection of VAT payable
by the operator
Supervision is carried out on celluler
operators
3 Gift Cards Charges when gift cards are
delivered or imported
Supervision is carried out on PKP who
submits or imports
Source: Utomo, 2017
VAT Law No. 42 of 2009 concerning Value Added Tax does not contain a definition of
VAT, so according to Waluyo (2009) Value Added Tax is the imposition of a tax on consumption
expenditures both carried out by individuals and entities, both in the form of private and
government in the form of spending on goods or services charged to the state budget. According
to Gunadi (2010), VAT is directly related to income and costs for obtaining, collecting and
maintaining (taxable) income and other income deductions. Along with the development of
technology and information, now various trade transactions for goods or services can be done
online. The development of online trading is based on the convenience for business actors to
promote their wares and does not require more costs because it does not require a physical store.
The large number of E-Commerce or online businesses from various walks of Indonesian society
that have developed beyond conventional traders has made it even more endemic because online
trading has an unlimited number of markets. From a tax law standpoint, online commerce should
have the potential to be taxed. However, due to the lack of regulations regarding the imposition of
taxes on online businesses, it can result in the absence of norms that occur in tax regulations in
Indonesia. So that the tax potential is not utilized effectively. Therefore, this paper aims to: The
purpose of this research is to find out the implementation of VAT policies that exist in e-commerce
Shopee and what effect they have on the State.
Method
This research uses qualitative approach with a literature study and descriptive analysis
through primary data sources in the form of tax regulations, journals, books and other data sources
that can be analyzed and answer the purpose of this writing, namely knowing the implementation
of value added tax (VAT) in e-commerce Shopee.
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Nurul Hafifah & Gunadi
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Results and Discussion
The results of a survey conducted by the Central Bureau of Statistics (2020), of 16,277
business samples spread across 34 provinces throughout Indonesia, 90.18% are conducting e-
commerce businesses. The data shows that e-commerce has dominated the Indonesian market.
Another supporting indicator is the increasing emergence of marketplaces in Indonesia.
Marketplace is a business model designed in such a way with the aim of simplifying complex
business processes so that efficiency and effectiveness can be created by not only helping to
promote goods, but also facilitating online payment transactions (Yustiani & Yunanto, 2017). Tax
in Indonesia is defined in Law Number 28 of 2007 concerning the Third Amendment to Law
Number 6 of 1983 concerning General Provisions and Tax Procedures article 1 paragraph 1.
In connection with the new policy of the Directorate General of Taxes
(199/PMK.010/2019), starting from 30 January 2020, the Indonesian government imposed new
provisions regarding Import Duty for products sent from the Free Trade Area (Bintan Regency,
Batam City, Sabang City, and Aceh Besar District) and overseas. Changes from the limit value of
shipments subject to Import Duties with an initial VAT of 10% USD 75 to 10% USD 3. Therefore,
with these changes, Shopee launched a system that can calculate the percentage of Import Duty,
VAT and PPh that apply from the price set by the Seller automatically and a system that can display
the price after tax on the product page to the Buyer. Along with an adjustment of 6% is made to
avoid losses to the Seller due to different percentages of Import Duty, VAT and PPh and other
reasons. For example, the highest percentage is used for one order, although the percentage for
each product can vary according to the product category.
Irianto (2015) argues that tax collection is the implementation of jurisdictional tax
authority in the field of taxation as an attribute of Indonesian sovereignty to regulate people and
objects within its territory. There are three types of tax collection systems according to the Official
(2009, quoted in Nisa, 2017). The official assessment system gives authority to the tax authorities.
Fiskus will determine the amount of tax payable to be paid by taxpayers in accordance with
applicable tax laws and regulations. The self assessment system gives authority to taxpayers.
Taxpayers will be authorized to determine for themselves the amount of tax owed annually as well
as to pay and report it themselves in accordance with applicable tax regulations. With Holding
System is a tax collection system that gives authority to other parties or third parties. Third parties
are parties other than the taxpayer and the government, which in this case is the DGT. The third
party will later determine the amount of tax that must be paid by taxpayers who are owed each
year and make deductions and collections in accordance with applicable tax regulations.
In practice, value added tax has several characteristics. Sukardji (2014, quoted in Kamal
& Ruliyan, 2019) states that as a tax imposed on consumption activities, there are eight legal
character points of value added tax, namely objective tax, multi stage levy, is an indirect tax, is
non-cumulative, adheres to single tariff, calculated using the indirect subtraction method, type of
consumption; and taxes on domestic consumption. Tax subjects in VAT administration can be
interpreted as parties responsible for paying value added tax to the state treasury (Safitra &
Swasito, 2018).
Shopee began entering the Indonesian market at the end of 2015 and is under the auspices
of PT Shopee Internasional Indonesia. Shopee itself is a subsidiary of the SEA Group—which was
previously named Garena Group—which is headquartered in Singapore with a founder named
Forrest Li. The mission carried out by the SEA Group is to improve the quality of life of consumers
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Nurul Hafifah & Gunadi
Implementation of Value Added Tax Policy In E-Commerce Shopee
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and small entrepreneurs so that they become better by utilizing technology. SEA Group itself is
listed on the NYSE (New York Stock Exchange) or the New York stock exchange under the
symbol SE. Unlike its founder, the leader or chief executive officer of Shopee is Chris Feng. Chris
Feng is a former Rocket Internet activist who was a pioneer of Zalora and Lazada. In addition, the
CEO of Shopee is a top graduate at the University of Singapore (Feng, 2021). Shopee in Indonesia
is headquartered at Wisma 77 Tower 2 Floor 11, on Jalan Letjen S. Parman Kaveling 77, Slipi,
Palmerah, West Jakarta, 11410. Until 2021, shopee is not only in Singapore and Indonesia but has
spread to various countries in the Southeast Asian region including Indonesia, Malaysia,
Singapore, Thailand, the Philippines and Vietnam. Even shopee has started to expand its business
reach to Taiwan.
In terms of supply chain or supply chain for digital content & service transactions, there
is a marketplace owned by PT Shopee Internasional Indonesia to act as an intermediary between
consumers and sellers. Therefore, PT Shopee Internasional Indonesia acts as an intermediary or
intermediary in transactions involving digital content & services. PT Shopee Internasional
Indonesia as an intermediary has the authority to collect, deposit and report VAT on behalf of
foreign traders or service providers. If there are foreign service providers or foreign traders
conducting transactions with service recipients and/or buyers of goods through the marketplace
owned by PT Shopee Internasional Indonesia, then VAT PMSE payable for the utilization of JKP
and/or BKPTB in the customs area from outside the customs area is collected, deposited, and
reported by PT Shopee Internasional Indonesia. However, if in the utilization of JKP and/or
BKPTB in the customs area from outside the customs area there are VAT objects other than those
subject to PMSE VAT, then VAT is still payable and collection, deposit and reporting are carried
out by the service recipient and/or goods buyer as stipulated in Article 3A of the VAT Law.
The DGT may request PT Shopee Internasional Indonesia to provide a detailed report on
PMSE VAT transactions that have been collected for each period of one calendar year in electronic
form and submitted through a system or application that has been provided and/or determined by
the DGT. The detailed transaction report submitted to the DGT shall at least contain the name and
NPWP of the buyer of goods and/or service recipients in terms of proof of PMSE VAT collection
including the NPWP of the buyer of goods and/or service recipients; the amount of PMSE VAT
collected; the amount of payment; and the number and date of proof of PMSE VAT collection.
The percentage of Import Duty, VAT and PPh used by Shopee in the automatic after-tax
price calculation system will be added by 6% to avoid Seller losses due to the determination of
different Import Duty, VAT and PPh percentages by the Customs that occur due to the PPh
Percentage which is higher for sellers without NPWP, the use of the highest percentage for one
order with several products that have different percentages and so on. This increase in percentage
is temporary and will be readjusted if the percentage of Import Duty, VAT and PPh has been
increased by Customs. The after-tax pricing system will still automatically calculate the after-tax
price for products priced under USD3 and products shipped from the Free Trade Area to the Free
Trade Area. Later, the system will be developed to not affect transactions with prices below USD3
and product shipments from the Free Trade Area to the Free Trade Area.
PMSE VAT collection carried out by PT Shopee Internasional Indonesia is a new VAT
collection mechanism. Previously, in accordance with Article 3A paragraph (3) of the VAT and
PMK Law Number PMK-40/PMK.03/2010, that in reality Indonesia uses a customer collection or
deposit mechanism. VAT by consumers themselves in consumption transactions or utilization of
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digital content and services originating from foreign providers. There has been a change in the
mechanism from customer collection to intermediary collection with the enactment of PMK-
48/PMK.03/2020. In fact, PMK-210/PMK.010/2018 has regulated the collection of VAT using an
intermediate collection mechanism. However, because PMK-210/PMK.010/2018 status is
revoked, the rules regarding intermediary collection do not apply. The intermediary collection
mechanism is suitable for implementing B2C or Business-to-Consumer transactions because it can
reduce the risk of low tax compliance caused by consumers end have low tax knowledge. The
intermediary collection mechanism has challenges and obstacles. The first challenge and obstacle
in the intermediary collection mechanism is the way for the government or tax authorities to carry
out effective enforcement. In addition, the intermediary collection mechanism will incur
compliance costs and administrative costs for the intermediary. Finally, the characteristics of
foreign digital content and service providers, who do not have a physical presence in Indonesia,
are also an obstacle in the VAT collection mechanism using intermediary collection.
The increasing number of internet users is a great opportunity for entrepreneurs to market
their products via the internet or online. Easy internet access either via wifi or cellphone has an
impact on changes in consumer behavior, from direct or conventional shopping to online shopping,
the more people use the internet, the happier they make purchases through electronic stores. The
payment process through Shopee is not done conventionally, but uses payment methods including
credit cards, bank transfers, third parties and the Cash on delivery (COD) system. The Shopee
Guarantee feature is protection from Shopee for consumers by holding consumer funds. If the
consumer confirms that the goods have been received properly, the funds will be forwarded to the
seller. Shopping through Shopee is in demand by various groups, such as what happened among
students. They chose Shopee because it has free shipping, complete categories, and guaranteed
goods received in good condition.
One of the factors that influence repurchase intention is the coupon sales promotion.
Coupon sales promotion is a certificate that entitles the holder to a number of savings on the
purchase of a certain product which is usually sent by post, affixed or wrapped with other products,
or attached to advertisements in magazines and newspapers. With a coupon or voucher promotion
in the form of free shipping from Shopee, buyers will get free shipping in the form of a shipping
fee subsidy of Rp. 20,000 which can be used to buy products to make it more efficient.
Repurchasing interest is basically closely related to online customer reviews. Shopee Online
Customer Review (OCR) can be easily found. OCR is important for consumers in making
purchasing decisions online. Another factor that can influence consumer interest in repurchasing
is perceived enjoyment. Convenience is one of the main motivations that underlies consumers'
tendency to shop online through e-commerce. Shopee is an e-commerce-based mobile shopping
that provides the pleasure of shopping without having to jostle and queue. The pleasure of seeing
the products offered, the freedom to visit online stores and a wide selection of products can
significantly influence consumer interest in repurchasing.
The internet is the largest computer network in the world and has a huge influence on the
world economy. The digital economy is one of the new stages in the world economy which is also
known as the fourth industrial revolution. E-commerce business is believed to be easier and more
cost effective compared to conventional businesses. But this does not guarantee total security of
transactions. Currently, various kinds of fraud and other crimes are often found in cyberspace
(cybercrime). However, the enthusiasm of the public to continue to be involved in the e-commerce
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business has not subsided, causing a shift in shopping patterns from conventional to online. This
of course makes the value of e-commerce transactions continue to increase from year to year.
Based on the frequency of consumer shopping at Shopee e-commerce, the majority of
consumers have shopped more than five times, this is because the shipping fee subsidy provided
by Shopee e-commerce is more economical for consumers. Membership requirements with a
minimum spending requirement of Rp. 90,000 given by e-commerce Shopee in accordance with
the subsidies given to encourage consumers to shop at e-commerce Shopee. In e-commerce
marketing activities, Shopee provides a different promotion frequency every month. It is supported
by Instagram as promotional media tools in giving coupons. However, this interactive media is
less precise when compared to elevation to convey information to consumers. Shopee e-commerce
coupons have a one-month redemption period in each period. Companies must be able to provide
promotions that match consumer expectations. If consumers receive intensive or large subsidies,
consumers will be even more motivated to make repeat purchases at Shopee e-commerce. Shopee
e-commerce consumers have a very good perception of online customer reviews in terms of trust,
recommendation framing and recommendation ratings so that consumers feel interested in making
repeat purchases at Shopee e-commerce. Based on reviews on Shopee e-commerce, consumers
trust the information that has been provided by other consumers because they have made purchases
before at Shopee e-commerce. Reviews from other consumers provide a relevant picture,
according to the current situation, true as it is and equip consumers so that these reviews are useful
for making decisions to buy products at Shopee e-commerce. Based on the recommendation
framing, a review in the form of positive comments in the form of praise for a product will
encourage consumers to repurchase interest in e-commerce Shopee. Interest in repurchasing at
Shopee will be created if the recommendation rating in a review has a high value and a large
volume of reviews.
The continuous development of technology has created new opportunities for businesses.
Almost all elements in business activities utilize existing technology. Various efforts have been
made by business people to increase sales levels and take market interest by innovating using
existing technology. Business activities carried out by utilizing internet technology are called e-
commerce. According to Turban (2014, quoted in Yulianto et al., 2015) e-commerce is an
exchange or process of selling, buying, transferring information, services and products through
computer networks including the internet. So, it can be concluded that e-commerce is the process
of developing, selling, paying, marketing, shipping, and servicing various products and services
that are traded in a global market with a network of customers with support from a network of
business partners around the world (Yulianto et al., 2015).
Trading activities or transactions carried out by utilizing E-Commerce media may also be
subject to Value Added Tax (VAT). Value Added Tax is an indirect tax that is collected on the
delivery of goods and services, where the delivery of goods and services is an object of Value
Added Tax (VAT). This type of tax is the most popular type of indirect tax used in the world,
adopted by more than 150 countries around the world. There are several important things that need
to be considered in the collection of Value Added Tax, namely the object of tax collection, the
range of transactions carried out, the time of tax collection, the amount of tax collected, the parties
involved in tax collection. tax collection. has the authority to collect taxes, regarding tax collection
places as well as the supervision and law enforcement processes that will be carried out (Lim,
2018).
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According to Meiyarni et al, (2021) in his research, he stated that conversions for the
food, health and pharmaceutical sectors had increased significantly. The food sector has increased
by 55%, Health 19% and pharmaceuticals 11%. In preventing the spread of the Covid-19
pandemic, the use of online shopping applications has jumped 300%. E-commerce as a means of
buying and selling online can increase company or individual income and bring company success
and company sustainability. The COVID-19 pandemic has changed people's behavior, such as
people increasingly avoiding public places and offline retail stores, so that online sales for several
sectors have increased. The aim of this study is to determine the effect of the COVID-19 pandemic
on e-commerce transactions at Shopee Indonesia.
Hwang et al, (2020) found the recent increase in online sales was driven by new and
existing customers and suggested that online retail platforms could help retailers survive and adapt
in a pandemic. Luxury goods retail has also seen tremendous growth along with online shopping
in recent times. Both single and multi-brand luxury retailers have attracted a wide range of
consumers, especially those with online shopping channels. the Covid-19 pandemic that is
currently sweeping the world, including Indonesia, will definitely affect people's lives, both in
health and social and economic aspects. The development of e-commerce in Indonesia has changed
several consumer behaviors. For example, the habit of shopping at shopping centers or stores has
now started to switch to using online media.
The Association of Indonesian Internet Service Providers (APJII) stated that there was a
significant increase in internet usage among Indonesians during the large-scale social restrictions
(PSBB) period. Desmichel and Kocher (2020) found that consumers of multi-brand stores are more
likely to make price/brand comparisons as stores carry a greater variety compared to single-brand
stores. This is more likely to occur when consumption occurs via online platforms. With a wider
choice, consumers tend to engage in comparisons of brands, goods, and price points. Therefore,
they suggest that a hedonic shopping experience can make consumers less price sensitive. Abay et
al. (2020) used Google trends data to document a temporal shift from physical store sales to online
shopping services and a significant decline in demand for the hospitality, restaurant and retail
sectors.
Indonesia has an e-commerce roadmap that regulates licensing, taxation, holding, and
support for e-commerce. The e-commerce roadmap also regulates the protection of society. This
is stated in Presidential Regulation (Perpres) Number 74/2017 concerning the 2017-2019 National
Electronic Trading System Roadmap (e-commerce road map). Implementation of e-commerce
taxation is regulated by Minister of Finance Regulation Number 210/MK.010/2018 concerning
Tax Treatment of Trade Transactions Through Electronic Systems which came into effect April 1,
2019. The government does not set new rates or types of taxes for e-commerce players. The
purpose of the regulation is to create equality between economic actors. Tax objects in e-commerce
are trade transactions related to the marketplace platform for service providers, traders and buyers.
Previous research used in developing the hypothesis is as follows: Taufik & Ayuningtyas
(2020) found that the Covid-19 Pandemic, which is a non-natural disaster, is one of the factors
from the external environment that has an impact on reducing conventional business activities, but
can take advantage of platform-based business activities. on line. New technological developments
and diversified consumer demands have boosted today's digital retail industry. It also affects the
way buyers/consumers get the goods and services they want. Consumers are turning to e-
commerce and mobile to make purchases that would normally be made physically. This change in
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shopping style has been largely driven by the emergence of multiple marketplaces and platforms.
This change will also impact transaction taxation.
Rao (2000) states that the increasing number of internet users has an impact on the
increasing turnover of electronic commerce, which in fact raises several problems in the financial
sector, one of which is the tax on the sale of goods on the internet. Rahayu (2010) defines tax
compliance as a condition in which taxpayers fulfill all tax obligations and exercise their tax rights.
Tax compliance is the fulfillment of tax obligations carried out by individuals or entities as
taxpayers in order to contribute to today's development which is expected to be given voluntarily
in fulfillment.
The following is an illustrative example of setting prices and releasing funds at Shopee
(Source: Shopee.co.id):
1. The seller sets the price for selling flasks at Rp. 100,000, then the price after tax that will be
shown to buyers on the product page is:
The selling price set by the seller = Rp. 100.000
Entry charge (7.5% X Rp.100.000) = Rp. 7.500
PPN (10% X Rp. 100.000) = Rp. 10.000
PPh (0% X Rp. 107.500) = Rp. 0
Compliance (6% X Rp. 100.000) = Rp. 6.000
Harga setelah pajak = Rp. 123.500
1. Buyers purchase products and make payments of:
Product Price = Rp. 123.500
Shipping Cost = Rp. 10.000
Price after Tax = Rp. 133.500
2. The tax element will be paid by the buyer because the price displayed to the buyer is the price
that includes import duties, VAT, PPh and adjustments. So that later Shopee or the seller will pay
import duties, VAT, and PPh to the delivery service to be forwarded to Customs and Excise. If the
Buyer chooses delivery below:
a. Cashless Delivery Services (J&T Express, JNE Regular, JNE YES, SiCepat REG, and SiCepat
Halu)
Shopee will pay for shipping costs, import duties, VAT and PPH to the delivery service. The
delivery service accepts a postage of Rp. 10,000 and pay import duties, VAT and PPh to the
government according to the amount billed by Customs, then Shopee will release the funds to the
seller according to the price of the product set by the seller, which is Rp. 100,000.
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b. Non-Cashless Delivery Service (Special Express Post)
The seller pays shipping costs, import duties, VAT and PPh to the delivery service. Then the
delivery service receives a postage of Rp. 10,000 and pay import duties, VAT and PPh to the
government according to the amount billed by Customs. Then Shopee will release funds to the
seller according to the final price shown to the buyer and the shipping fee paid by the buyer, which
is 133,500.
The development of smart phones has been able to change people's lives today. The
emergence of various and innovative applications on smartphones has succeeded in changing
people's behavior in various ways, ranging from economic, social, lifestyle, even people's shopping
styles. People's shopping is no longer traditional, which usually comes to the market to buy an
item, but now people can shop online by simply pressing the smartphone screen while sitting
relaxed at home. Repurchase intention or repurchase intention is customer satisfaction which is
measured behaviorally by asking whether the customer will shop or reuse company services. In e-
commerce applications, customer repurchase intention will appear after making a purchase
accompanied by a feeling of satisfaction when shopping using the application. Satisfaction in using
e-commerce applications is called electronic satisfaction or electronic satisfaction. Consumer
behavior is very dynamic and tends to be adaptive, quickly adapting to the demands of society,
which always need public transportation. Their demands are complex so that the government must
make a good strategy for the quality of transportation services. They need to be managed by the
best managers to adapt to user expectations. In addition, continuous performance appraisal must
also be carried out to narrow the gap expected and felt by service users. They must know consumer
behavior well, with a full understanding of people's habits. They even have to understand the
movement of people and activities well. In this way, consumer needs can be met.
People's lifestyle in the modern era is increasingly instant. Many people are looking for
something practical to meet their daily needs. This affects the factor of consumer spending in the
current era. Increasing internet penetration makes consumers have a variety of choices to buy the
goods they need through e-commerce platforms. Shopee is one of the largest mobile application
platforms in Indonesia, Shopee offers On the Shopee market there are supporting logistics delivery
services that deliver goods to customers, Sweetpeasbabynkis online. Most customers choose to use
JNE and J&T Express for logistics services, JNE is a shipping service company in Indonesia that
has expanded its domestic network throughout Indonesia and J&T Express is a new shipping
service company in Indonesia that is growing rapidly and has made express delivery between
cities, outside cities, and between provinces.
Shopee e-commerce consumers have a very good perception of perceived pleasure in
terms of happiness. A website is not only important for marketing products and services, but also
for providing information that can attract customers to make transactions. In their free time,
consumers often browse the e-commerce application Shopee to refresh their brains. Complete and
varied product choices when exploring Shopee e-commerce make consumers feel that they have a
pleasant experience. This encourages consumers to make repeat purchases on Shopee e-commerce
in the future. The intention to repurchase at Shopee is also influenced by the convenience (joy) of
consumers who have a more comfortable feeling compared to offline shopping because they are
not disturbed by other people's activities so that consumers feel more flexible in repurchasing
products at Shopee e-commerce. Another factor that influences repurchase intention is the fun
factor, e-commerce Shopee must provide an attractive appearance so that consumers like it. The
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emergence of the Shopee e-commerce system is now equipped with live streaming, live chat, social
sharing and hashtag features to make it easier for sellers and buyers to find the desired product. If
consumers get a good display and an easy-to-understand shopping system, consumers will not
hesitate to make repeat purchases at Shopee e-commerce.
Conclusion
The increasing number of visits or users of Shopee services as e-commerce that provides
various innovations and conveniences for consumers in shopping certainly has an effect on
increasing tax revenue for the State, in this case including value added tax (VAT). The amount of
revenue from these transactions must be accompanied by more optimal supervision both in terms
of government and internal Shopee in supervising and implementing rules regarding value added
tax to producers or sellers who are members of the e-commerce. Shopee's challenge as a seller
facilitator is the large number of sellers who do not have an NPWP, but apart from that Shopee
has created its own roadmap in maximizing the tax collection regulation. Therefore, it is hoped
that Shopee can re-socialize the application of the e-commerce transaction tax, considering that
the growth of e-commerce transactions has been increasing from year to year. Socialization can be
done to MSMEs who are members of the e-commerce.
The emergence and rapid growth of e-commerce has created the challenge of creating a
favorable legal environment for the effective implementation of online buying and selling
processes and VAT treatment. The emergence and rapid growth of e-e-commerce has created a
challenge to create a good legal environment for online transactions and effective VAT treatment.
The collection conducted by PT Shopee Internasional Indonesia as an intermediary is an efficient
collection because the DGT simply supervises the PT Shopee Internasional Indonesia application
market without having to supervise every foreign service provider or foreign trader. overlapping
with the imposition of VAT on foreign service providers or foreign traders. The approach taken is
to make PT Shopee Internasional Indonesia, a partner in collecting PMSE VAT.
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