A New Blockchain-Based Value-Added Tax System

Conference paper
First Online:
Part of the Lecture Notes in Computer Science book series (LNCS, volume 10592)

Abstract

Value-Added Tax or VAT plays an important role in the Indonesian state revenue. Despite its importance, it requires a complex administration process to be done properly. The complexity of the tax administration creates loopholes that can be exploited by dishonest taxpayers to minimize the tax paid to the government. The current system does not prevent the dishonest taxpayers to forge tax invoices which bring tax loss for the government. We utilize the blockchain technology to create a novel approach of implementing the distributed ledger in taxation area. Our proposed protocol creates a transparent and secure VAT system as well as simplifies the process of administering the VAT. The system increases the tax compliance by reducing the risk of tax fraud and increasing the monitoring capability of the tax authority.

Keywords

Blockchain Value-Added Tax Tax credits 
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Notes

Acknowledgement

This work was partially supported by Science & Technology Innovation Projects of Shenzhen, China (GJHZ20160226202520268, JCYJ20170302151321095).

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Faculty of Information TechnologyMonash UniversityMelbourneAustralia
  2. 2.Data61CSIROMelbourneAustralia
  3. 3.Directorate General of TaxesJakartaIndonesia
  4. 4.College of Information EngineeringShenzhen UniversityShenzhenChina

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