Tinjauan Teoritas Penetapan VAT Threshold di indonesia

Abstract

In designing a VAT, the determination of the threshold magnitude is one key
factor in successful implementation of VAT. Basically, the determination of the
level of the threshold by considering the magnitude of administrative costs and
compliance costs compared to tax revenue generated. Some countries such as
Ghana and Uganda have trouble in the early implementation of VAT due to the
low set of the level of the threshold. Hence the determination of the optimal level
of threshold has become a very important part in supporting the successful
implementation of VAT. This paper is intended to evaluate the magnitude of the
level of threshold applied in Indonesia. The analysis showed that the level of
threshold applied in Indonesia in general its value does not vary much with the
results of calculations using the prevailing theory.