A new blockchain-based Value-Added Tax system

Dimaz Ankaa Wijaya, Joseph K. Liu, Dony Ariadi Suwarsono, Peng Zhang

Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

15 Citations (Scopus)

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.

Original languageEnglish
Title of host publicationProvable Security
Subtitle of host publication11th International Conference, ProvSec 2017 Xi’an, China, October 23–25, 2017 Proceedings
EditorsTatsuaki Okamoto, Yong Yu, Man Ho Au, Yannan Li
Place of PublicationCham Switzerland
PublisherSpringer
Pages471-486
Number of pages16
ISBN (Electronic)9783319686370
ISBN (Print)9783319686363
DOIs
Publication statusPublished - 2017
EventInternational Conference on Provable Security 2017 - Xi'an, China
Duration: 23 Oct 201725 Oct 2017
Conference number: 11th
https://www.anslab.org/events/PROVSEC17/index.html

Publication series

NameLecture Notes in Computer Science
PublisherSpringer
Volume10592
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

ConferenceInternational Conference on Provable Security 2017
Abbreviated titleProvSec 2017
CountryChina
CityXi'an
Period23/10/1725/10/17
Internet address

Keywords

  • Blockchain
  • Tax credits
  • Value-added tax

Cite this

Wijaya, D. A., Liu, J. K., Suwarsono, D. A., & Zhang, P. (2017). A new blockchain-based Value-Added Tax system. In T. Okamoto, Y. Yu, M. H. Au, & Y. Li (Eds.), Provable Security : 11th International Conference, ProvSec 2017 Xi’an, China, October 23–25, 2017 Proceedings (pp. 471-486). (Lecture Notes in Computer Science; Vol. 10592 ). Springer. https://doi.org/10.1007/978-3-319-68637-0_28