Rethinking Value Added Tax in the Digital Economy: Systematic Literature Review of Design, Evaluation, and Administrative Process for Digital Supply Transaction

Elsie Sylviana Kasim; Gunadi; Titi Muswati Putranti

doi:10.58777/reb.v4i2.666

Authors

Elsie Sylviana Kasim Tax Administration, Vocational School, Universitas Indonesia, Depok
Gunadi Fiscal Administration, Faculty of Administrative Sciences, Universitas Indonesia, Depok
Titi Muswati Putranti Fiscal Administration, Faculty of Administrative Sciences, Universitas Indonesia, Depok

DOI:

https://doi.org/10.58777/reb.v4i2.666

Keywords:

destination-based VAT, cross-border digital services, systematic review

Abstract

In the digital economy, this systematic literature review examines the design, evaluation, and administration of VAT policies. Following PRISMA and the SPIDER model, we searched Scopus using targeted keywords, identifying 114 records. After applying predefined inclusion criteria and open-access filters, 106 records were excluded, leaving eight high-quality articles. The articles were independently assessed for risk of bias using the JBI Critical Appraisal Tool, then subjected to standardized data extraction and thematic synthesis. The Literature has evolved from primarily legal discussions toward a broader, integrated perspective. Five policy approaches emerge: extending tax jurisdiction; facilitating collection through OSS/IOSS; appointing digital platforms as tax collectors; digitizing tax administration; and strengthening international cooperation. VAT outcomes depend not only on policy design, but also on administrative capacity, digital infrastructure, and consumer behavior. These measures can increase revenue and transparency, yet challenges remain, including legal uncertainty, fraud risks, limited data, and weak international coordination. Research also remains concentrated in developed countries. This study proposes conceptualizing VAT as a digital ecosystem involving multiple actors, offering policymakers a framework for developing more effective, adaptive, and inclusive tax regimes across increasingly borderless, rapidly evolving, and diverse digital markets worldwide today.

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