The Role of SP2DK in Monitoring Value-Added Tax (VAT) Compliance in Indonesia: Conceptual Analysis, Challenges, and Solutions

Abstract

This study aims to analyze the relationship between SP2DK and VAT, including issues that arise in its implementation, through a review of international literature, domestic regulations, and previous research. This study employs a descriptive qualitative approach, questionnaires distributed to 78 PKP, interviews were conducted with 10 PKP during field surveys A Letter Requesting Explanation of Data and/or Information (SP2DK) is an administrative clarification instrument used by tax authorities to assess the accuracy of taxpayer reporting in the self-assessment system. In the context of Value Added Tax (VAT), SP2DK is crucial because the multi-stage VAT structure is highly sensitive to data mismatches and tax invoice discrepancies. The implementation of SP2DK faces several problems, including inaccurate transaction data quality, input errors in e-Invoices, and poor taxpayer understanding regarding Input Tax crediting. Another issue arises from taxpayers' perception that SP2DK constitutes a form of administrative pressure approaching an audit, leading to resistance and discomfort during the clarification process. Furthermore, the tax authorities' capacity to analyze VAT transaction patterns and interpret data mismatches also poses a barrier to ensuring the effectiveness of SP2DK. (The study shows that although SP2DK plays an important role in improving VAT compliance through non-audit clarification, its effectiveness is heavily influenced by data quality, taxpayer understanding, and tax authorities' capacity. SP2DK has proven to be an effective, non-coercive administrative instrument in improving VAT compliance among MSMEs, especially when combined with e-Invoice digitalization and taxpayer education. This study confirms that the integration of administrative clarification, digitalization, and tax authorities' oversight can reduce the risk of VAT fraud and increase voluntary compliance.