Evaluation of the Implementation of E-Invoicing in the Law Enforcement Process at the West Jakarta Regional Office of the Directorate General of Taxes

Abstract

This study aims to evaluate the effectiveness of e-Invoice implementation in minimizing the issuance of Tax Invoices Not Based on Actual Transactions (TBTS) and to analyze law enforcement by the West Jakarta Regional Office of the Directorate General of Taxes (DGT). This qualitative research with a case study approach uses primary data from in-depth interviews with four key informants and secondary data in the form of official DGT documents for the 2020-2024 period. The results show that e-Invoicing is effective in improving tax administration efficiency, but it is not effective in eliminating the practice of TBTS Tax Invoices because the system is only capable of validating administrative aspects without being able to verify the economic substance of transactions. Law enforcement is carried out in stages based on the ultimum remedium principle, but its effectiveness depends on the financial capacity of taxpayers to recover state losses. The main obstacles include gaps in identity verification, the use of figurehead directors, misuse of access credentials, and the post-audit nature of law enforcement. The study recommends strengthening biometric verification, integrating inter-agency systems, and developing early detection capabilities based on data analytic.