Research Review on Blockchain Adaptation to VAT
DOI:
https://doi.org/10.46799/ijssr.v3i3.297Keywords:
Blockchain, Value-added Tax, Taxation, Tax SystemAbstract
Blockchain technology may provide a solution for the tax industry. It is a distributed ledger that makes it possible to trade anything of value securely, openly, and with less threat of fraud. People might find it simpler to pay their taxes, and governments might find it easier to close the tax gap. But getting from theory to practice is a long journey that also presents challenges, which needed to be discussed. This paper reviewed previous research specifically on the adaptation of blockchain to Value-Added System (VAT). Apart from the theoretical framework and proposed prototype, the majority of research used a qualitative approach, according to the findings. The decentralized network was mostly used as the blockchain structure and design for VAT, with a private block. The consensus that’s mainly used among the articles is PoA, PoA, and PBFT.
References
Alkhodre, A., Jan, S., Khusro, S., Ali, T., Alsaawy, Y., & Yasar, M. (2019). A blockchain-based value added tax (VAT) system: Saudi Arabia as a use-case. Int. J. Adv. Comput. Sci. Appl, 10(9), 708–716.
Bakos, Y., Halaburda, H., & Mueller-Bloch, C. (2021). When permissioned blockchains deliver more decentralization than permissionless. Communications of the ACM, 64(2), 20–22.
Bellon, M., Dabla-Norris, E., Khalid, S., & Lima, F. (2022). Digitalization to improve tax compliance: Evidence from VAT e-Invoicing in Peru. Journal of Public Economics, 210, 104661. https://doi.org/10.1016/j.jpubeco.2022.104661
Bitjoka, G. B., & Edoa, M. M. N. (2020). Blockchain in the implementation of VAT collection. American Journal of Computer Science and Technology, 3(2), 18–26.
Cho, S., Lee, K., Cheong, A., No, W. G., & Vasarhelyi, M. A. (2021). Chain of values: examining the economic impacts of blockchain on the value-added tax system. Journal of Management Information Systems, 38(2), 288–313.
Hughes, L., Dwivedi, Y. K., Misra, S. K., Rana, N. P., Raghavan, V., & Akella, V. (2019). Blockchain research, practice and policy: Applications, benefits, limitations, emerging research themes and research agenda. International Journal of Information Management, 49, 114–129.
Klein, H. K., & Myers, M. D. (1999). A set of principles for conducting and evaluating interpretive field studies in information systems. MIS Quarterly, 67–93.
Mazur, O. (2022). Can Blockchain Revolutionize Tax Administration? Penn St. L. Rev., 127, 115.
Migai, C. O., de Jong, J., & Owens, J. P. (2018). The sharing economy: Turning challenges into compliance opportunities for tax administrations. EJTR, 16, 395.
Nguyen, V.-C., Hoai-Luan, P., Thi-Hong, T., Huynh, H.-T., & Nakashima, Y. (2019). Digitizing invoice and managing vat payment using blockchain smart contract. 2019 IEEE International Conference on Blockchain and Cryptocurrency (ICBC), 74–77.
Price waterhouse coopers, P. W. C. (2016). The future of work–A journey to 2022.
Roberts, J. J. (2018). Bitcoin spinoff hacked in rare’51% attack’. Fortune.
Setyowati, M. S., Utami, N. D., Saragih, A. H., & Hendrawan, A. (2020). Blockchain technology application for value-added tax systems. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 156.
Søgaard, J. S. (2021). A blockchain-enabled platform for VAT settlement. International Journal of Accounting Information Systems, 40, 100502.
Wijaya, D. A., Liu, J. K., Suwarsono, D. A., & Zhang, P. (2017). A new blockchain-based value-added tax system. Provable Security: 11th International Conference, ProvSec 2017, Xi’an, China, October 23-25, 2017, Proceedings 11, 471–486.
Yalaman, G. Ö., & Y?ld?r?m, H. (2019). Cryptocurrency and tax regulation: Global challenges for tax administration. Blockchain Economics and Financial Market Innovation: Financial Innovations in the Digital Age, 407–422.
Published
Issue
Section
License
Copyright (c) 2023 Nurul Izzah Lubis, Sambas Ade Kesuma, Iskandar Muda
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
