Value Added Tax Revenue: The Role of the Self Assessment System for Tax Audits, Tax Collection with VAT Restitution as a Moderating Variable

Abstract

This study aims to explore the effects of the self-assessment system, tax audit, and tax collection on value-added tax revenue. Specifically, we aim to investigate whether the self-assessment system and value-added tax audit impact VAT restitution at KPP Pratama Jakarta Kelapa Gading. We conducted a quantitative research study using a causality approach, utilizing multiple linear regression analysis and moderated regression analysis with the assistance of Eviews Software. Our population consists of taxable entrepreneurs at the Jakarta Kelapa Gading Pratama Tax Service Office from 2016 to 2021, and our sample size is nearly 3000 taxpayers. We collected secondary data directly through KPP Pratama Jakarta Kelapa Gading. Our findings suggest that the self-assessment system and tax audits do not significantly impact value-added tax receipts, while tax collection has a positive impact. Additionally, VAT restitution does not affect value-added tax receipts. We also discovered that if VAT refunds moderate the Self Assessment System, Audit Taxes, and Tax Collections, their influence on Value Added Tax Revenues does not weaken. To improve compliance with tax obligations, we recommend that KPP, particularly Pratama Jakarta Kelapa Gading, enhance integrated tax education to increase Taxpayers’ understanding of the importance of fulfilling tax obligations correctly and the benefits of being a responsible citizen by paying taxes. Furthermore, supervision of tax regulations and tax collection should be strengthened to promote taxpayers’ awareness of their tax obligations and support the development of our nation and state.