Tax Compliance of Online Merchants and Perceptions of Legal Fairness in Digital Transaction Taxation Systems
Keywords:
Tax Compliance, Legal Fairness, Online Merchants, Digital Economy, Procedural Justice, MSMEs, E-Commerce TaxationAbstract
This study examines the socio-legal dilemma in implementing taxation for e-commerce businesses and digital MSMEs, focusing on taxpayer compliance levels and perceptions of legal fairness among online merchants. Employing a qualitative literature review method, this research synthesizes theoretical and empirical findings to analyze how perceptions of legal fairness influence tax compliance behavior in the digital economy sector. The analysis reveals that procedural, distributive, and interactional fairness dimensions collectively shape online merchants' assessments of whether the tax system deserves compliance. Perceived injustice triggers resistance and non-compliance, while perceived fairness fosters voluntary compliance and trust in tax authorities. Factors forming fairness perceptions include individual attributes such as education and financial literacy, social influences including community norms and peer comparisons, structural elements such as regulatory complexity and policy uncertainty, and institutional aspects encompassing service quality and tax officer behavior. The dynamic interaction between these factors and compliance behavior creates either positive cycles of trust and cooperation or negative cycles of resistance and enforcement escalation. This study concludes that improving tax compliance in the digital sector requires a comprehensive approach that addresses all dimensions of legal fairness through simplified procedures, enhanced legal certainty, quality public services, legal protection for MSMEs, and participatory policy formulation. These findings contribute theoretically by enriching tax compliance models with fairness dimensions specific to digital businesses and practically by providing evidence-based recommendations for more equitable and effective tax policies.
References
Abdurokhim, A., & Abdurokhim, A. (2025). Digital Economy and Tax Evasion: Analyzing the Role of Tax Authorities in Regulating E-Commerce Transactions. 1(1), 8–14. https://doi.org/10.59784/jtipjournal.v1i1.7
Akbari, M. J., Ahmadi, F., Valinia, S. N., Akbari, M. J., Ahmadi, F., & Valinia, S. N. (2025). Qualitative Analysis of Taxpayers’ Lived Experience of Tax Justice in Iran: An Approach Based on In-Depth Interviews. 1–12. https://doi.org/10.61838/bmfopen.307
Ariaf, M. A. R. M., Yusof, N. A. M., & Chuen, L. C. (2025). Understanding Tax Compliance Intention among E-Commerce Entrepreneurs: Proposing a TPB-Based Framework. International Journal of Research and Innovation in Social Science, IX(VII), 2360–2365. https://doi.org/10.47772/ijriss.2025.907000193
Carey, M. (2012). Qualitative Research Skills for Social Work: Theory and Practice. Ashgate Publishing.
Denzin, N. K., & Lincoln, Y. S. (Eds.). (2005). The Sage Handbook of Qualitative Research (3rd ed.). Sage Publications.
Farrar, J., Massey, D. W., Osecki, E., & Thorne, L. (2020). Tax Fairness: Conceptual Foundations and Empirical Measurement. Journal of Business Ethics, 162(3), 487–503. https://doi.org/10.1007/S10551-018-4001-4
Fionasari, D., Iznillah, M. L., Fionasari, D., & Iznillah, M. L. (2025). Between justice and complexity: unveiling tax morale in pekanbaru. Jurnal Riset Akuntansi Kontemporer, 17(2), 383–400. https://doi.org/10.23969/jrak.v17i2.31444
Firdaus, M., & Hardyansah, R. (2025). Law enforcement of digital business competition and protection of UMKM in the era of platform globalization. Studi Ilmu Sosial Indonesia, 5(1), 1–20.
Flick, U. (2009). An Introduction to Qualitative Research (4th ed.). Sage Publications.
Günay, H. F. (2024). What is the relationship between fairness and trust in terms of tax compliance? Journal of Public Finance and Public Choice, 1–18. https://doi.org/10.1332/25156918y2024d000000010
Hakiky, S. F., Mardikaningsih, R., & Issalillah, F. (2023). Juridical analysis of halal certification provisions for MSMEs in the act. Journal of Social Science Studies, 3(1), 35–40.
Halizah, S. N., Sinambela, E. A., Darmawan, D., & Mardikaningsih, R. (2022). The influence of entrepreneurship education, self-efficacy, locus of control and achievement motivation on entrepreneurial intention. Studi Ilmu Sosial Indonesia, 2(2), 47–58.
Hardin, R. (2002). Trust and Trustworthiness. Russell Sage Foundation.
Hidayat, W., Darmawan, D., & Hardyansah, R. (2024). Building business defense and value: A study on legal protection of trademarks, copyrights, and industrial designs for MSMEs. Journal of Social Science Studies, 4(2), 381–396.
Indarto, T., Negara, D. S., & Darmawan, D. (2023). Legal frameworks for mitigating monopoly practices adverse to MSMEs in Indonesia. Journal of Social Science Studies, 3(1), 1–8.
Juliansah, I., Prasetia, A., & Marthalina, M. (2025). Dynamics of Digital Tax Regulation Implementation : Case Study on Tax Consultants and E-Commerce Actors. JUMBIWIRA : Jurnal Manajemen Bisnis Kewirausahaan, 4(2), 728–740. https://doi.org/10.56910/jumbiwira.v4i2.2881
Khamis, I. H., & Mastor, Dr. N. H. (2023). The mediating effect of trust in authority on the relationship between tax system reform, tax knowledge, and e-commerce business voluntary tax compliance. https://doi.org/10.33102/iiecons.v10i1.134
Khayru, R. K., Kabalmay, R. N. K., Amri, M. W., & Mardikaningsih, R. (2022). The role of psychological capital and entrepreneurship education on student entrepreneurial intention. Studi Ilmu Sosial Indonesia, 2(1), 49–60.
Kirchler, E. (2007). The Economic Psychology of Tax Behaviour. Cambridge University Press.
Krippendorff, K. (2004). Content Analysis: An Introduction to Its Methodology (2nd ed.). Sage Publications.
Kurniawan, D. P., Negara, D. S., & Darmawan, D. (2024). Legal awareness of MSME actors on intellectual property in business governance. Studi Ilmu Sosial Indonesia, 4(1), 279–304.
Kusuma, G. S. A. W., Darmawan, D., & Hardyansah, R. (2024). Reconciliation of national laws and foreign agreements: Legal certainty for MSMEs in export-import. Journal of Social Science Studies, 4(1), 1–10.
Mardikaningsih, R., Halizah, S. N., Hardyansah, R., Jahroni, J., & Darmawan, D. (2024). Strategic approach to enhancing MSME competitiveness through the implementation of sharia economic principles. International Journal of Service Science, Management, Engineering, and Technology, 5(1), 1–6.
Muslim, M. (2024). E-commerce Taxation: Challenges and Opportunities. Advances in Taxation Research, 2(2). https://doi.org/10.60079/atr.v2i2.280
Nagel, H., Huber, L. R., Praag, M. van, Praag, M. van, Praag, M. van, & Goslinga, S. (2019). The Effect of a Tax Training Program on Tax Compliance and Business Outcomes of Starting Entrepreneurs: Evidence from a Field Experiment. Journal of Business Venturing, 34(2), 261–283. https://doi.org/10.1016/J.JBUSVENT.2018.10.006
Nga, T. K. (2025). Tax management in Vietnam’s e-commerce sector: Challenges in enforcement and strategies for improving taxpayer identification and fairness. International Journal of Advanced and Applied Sciences, 12(8), 16–30. https://doi.org/10.21833/ijaas.2025.08.002
Nguyen, T. H., & Tran, H. (2025). Factors influencing personal income tax compliance of taxpayers with e-commerce business activities. Corporate and Business Strategy Review, 6(3, special issue), 411–422. https://doi.org/10.22495/cbsrv6i3siart17
Ntiamoah, J. A., & Asare, J. (2020). Taxation of Digital Business Transactions: Challenges and Prospects for Developing Economies. 6(3), 38. https://doi.org/10.22158/JEPF.V6N3P38
Nuraini, R., Halizah, S. N., Mardikaningsih, R., Vitrianingsih, Y., & Safira, M. E. (2022). The role of social entrepreneurship in environmental conservation: Challenges, strategies, and sustainability. Journal of Social Science Studies, 2(1), 47–54.
Onu, D., & Oats, L. (2018). Tax Talk: An Exploration of Online Discussions Among Taxpayers. Journal of Business Ethics, 149(4), 931–944. https://doi.org/10.1007/S10551-016-3032-Y
Pratama, N. A., Zahidi, M. Y., & Chaidir, T. (2024). The economic impact of e-commerce on msmes: opportunities and challenges in the digital era. Journal Of Finance, Economics, And Business, 3(2), 31–41. https://doi.org/10.59827/jfeb.v3i2.169
Puasa, M. A. A., & Roslan, M. A. (2025). The Influence of Social Media Campaigns on Tax Compliance Attitudes: A Concept Paper. International Journal of Research and Innovation in Social Science, IX(VII), 2425–2435. https://doi.org/10.47772/ijriss.2025.907000199
Putra, A. R., & Darmawan, D. (2022). Competitive advantage of MSMEs in terms of technology orientation and entrepreneurship competence. International Journal of Service Science, Management, Engineering, and Technology, 2(1), 15–20.
Putri, A. F., Prasetyawati, T., & Mukhtaruddin, M. (2025). Tax in the Digital Age: A Systematic Study on E-commerce and Taxation Policy. International Journal of Finance Research, 6(1), 50–70. https://doi.org/10.47747/ijfr.v6i1.2686
Saputra, W., & A’yun, A. Q. (2025). Building Compliant Entrepreneurs: A Field Experiment on Tax Training and Business Outcomes. Journal Economic Business Innovation, 1(4), 513–526. https://doi.org/10.69725/jebi.v1i4.184
Sembiring, O., & Riza, F. (2025). Influence of perceived fairness and tax policy on motor vehicle tax compliance. https://doi.org/10.31258/current.6.3.559-571
Sinambela, E. A., Darmawan, D., & Halizah, S. N. (2022). Digital inequality and unequal opportunity for young entrepreneurs in online economies. Studi Ilmu Sosial Indonesia, 2(1), 169–190.
Soon, A. L., Derashid, C., & Bidin, Z. (2020). The Influence of Normative Beliefs on Tax-Payers Attitude and Voluntary Tax Compliance Intention. 4(1), 33–43. https://doi.org/10.52962/IPJAF.2020.4.1.96
Widuri, R., & Irawan, W. (2019). Tax justice perception and trust in government on tax compliance. 105–110. https://doi.org/10.2991/TEAMS-19.2019.20
Wulandari, S., Purnama, R., & Lubis, A. R. (2024). Optimizing Tax Revenue on the Development of E-Commerce in the Digital Economy Era in Indonesia. Mimbar Pendidikan, 8(1), 58–69. https://doi.org/10.17509/mimbardik.v8i1.67991
Zahid, R. A., Darmawan, D., & Rojak, J. A. (2023). A comprehensive evaluation of entrepreneurship education in preparing the young generation to enter the modern job market. Journal of Social Science Studies, 3(2), 55–60.
