Voluntary and enforced tax compliance: evidence from e-commerce traders in Indonesia

This study examines the factors influencing tax compliance among e-commerce business actors in Jakarta, Indonesia, focusing on the role of trust in tax authorities, perceived power of authorities, and socio-demographic characteristics. Using snowball sampling to reach eligible taxpayers, the research collected data from December 2024 to February 2025 through an online survey completed by 419 e-commerce traders (91% response rate). The findings reveal that trust significantly increases voluntary compliance, while power has greater impact on enforced compliance. Higher income taxpayers showed more voluntary compliance, whereas older and more educated individuals demonstrated stronger enforced compliance but lower voluntary compliance. The study provides practical recommendations for tax authorities, including developing transparent digital platforms and simplified tax systems to build trust. By applying the Slippery Slope Framework to Indonesia’s digital economy, this research offers valuable insights for policymakers addressing e-commerce taxation challenges in developing countries. The demographic-specific results suggest tailored approaches, such as simplified procedures for highly educated taxpayers and trust-building measures for younger business owners.