Introduction State revenue is the right of the central government which is recognized as an increase in net worth


Introduction
State revenue is the right of the central government which is recognized as an increase in net worth. To finance the development of construction, Indonesia relies on revenues from various sources of state income. State revenue consist of Tax revenue, Non-tax revenue, and Grant receipt. The following figure is the graph of source the state income.

Source: Data Ministry of Finance 2017
From the figure above, it can be seen that Tax is indeed one of the state’s revenue sources that has the biggest contribution. Value Added Tax (VAT) contributions are considered important as well for state revenues because VAT is the second largest tax contributor. As can be seen from the figure below, VAT receipts continue to increase and are significant to the overall tax revenue year over year.

Source: Data Badan Pusat Statistik 2018
Regarding to the Law of the Republic of Indonesia No.42 of 2009 concerning the third amendment to Law No. 8 of 1983 about the Value Added Tax on Goods and Services Value and Sales Tax on Luxury Goods, Value Added Tax is a tax on the consumption of goods and services in the customs area which is imposed in stages on each production and distribution line. The imposition of Value Added Tax is strongly influenced by the development of business transactions and the consumption patterns of the people which are objects of Value Added Tax. The consumption activities for the developing countries such as Indonesia is one of the main economic activities carried out, therefore increasing public consumption activities means that it will affect the amount of VAT receipts (Renata, Hidayat, ; Kanishka, 2016). It can be assumed that VAT has a close relationship with economic activities. Economic activity is the vital activity to the sustainability of the country and economic fluctuations can affect the stability of tax revenues. Due to that phenomenon the increase or decreasing of Value Added Tax must be maintained through external and internal factors (Yuliana, Marhamah, ; Sutrisno, 2017).
External factors are influenced by the country’s macroeconomic conditions (Renata et al., 2016). The target of economic development that can be realized will help the government in realizing the tax revenue target (Yuliana et al., 2017). To support efforts to achieve economic development targets, there are macroeconomic indicators that must be maintained, such as the inflation rate, rupiah exchange rate, Gross Domestic Product (GDP), and the fuel prices. Also the internal factor to ensure the sustainability of VAT receipts are influenced by the tax policies, that if we examined from the side of the taxpayers in terms of their influence on VAT, one of them is the taxable person for VAT purposes (Renata et al., 2016). Previous studies have not dealt with the effect of GDP and fuel price to the admission of VAT.
Based on the explanation of the phenomena above, this study aims to examine the problem research with the title “The Influence of the Inflation, the Exchange Rate of Rupiah, the amount of Taxable Person for VAT Purposes, Gross Domestic Product, and Fuel Prices toward Admission of Value Added Taxes (Case Study: Kantor Pelayanan Pajak Pratama in Padang”.

Research Question
Do inflation, exchange rate of rupiah, the amount of taxable person for VAT purposes, GDP, and fuel prices affect to the admission of Value Added Tax?

Literature Survey
Data of the realization of state revenue (Badan Pusat Statistik, 2018), shows that the contribution of Value Added Tax to total state revenue in 2012 until 2018 is relatively increase but it was decrease in 2014 and 2016.

Source: Data Badan Pusat Statistik 2018
Even VAT just the second biggest contribution to the state revenue, but VAT is a tax on consumption which has the potential to increase VAT receipts annually, as it is known that consumption expenditure constitutes the largest portion of Indonesia’s Gross Domestic Product which means that consumption expenditures can be relied upon to encourage increased VAT revenues (Nuryani, 2016). Previous study have reported that economic growth in Indonesia is determined by consumption, if consumption increases then economic growth will also increase, this happens because an increase in consumption means that there has been an increase in demand for goods and services (Yuliarti, Amar, ; Idris, 2015). Several studies have analyze some factors that affect the admission of VAT. Based on the analysis of several factors that affect the admission of VAT, found that inflation has a positive effect on VAT receipts, because if there is an increase in the inflation rate it will increase the selling price where the selling price is the Tax Base (DPP) (Renata et al., 2016; Yuliana et al., 2017).
Research that conducted by (Renata et al., 2016; Yuliana et al., 2017) also found that exchange rate has negative effect to the admission of VAT, because 70% of Indonesia’s raw materials are still relying on import activities, if there is an increase in exchange rates (depreciation of Rupiah against the Dollar), the price of imported raw materials that Indonesia must pay automatically will be more expensive which will automatically increase the selling price of goods and services. Other than inflation and exchange rate, there is a published studies describing the influence of the amount of taxable person for VAT purposes to the admission of VAT. It shows that the number of taxable person for VAT purposes has a positive effect on VAT receipts, the more the taxable person for VAT purposes, the more VAT will be collected and deposited (Renata et al., 2016). Empirical study by (Nurrokhman, 2014), however, found no significant effect between the number of taxable person for VAT purposes on VAT receipts, this was influenced by the use of tax consultant services so that the taxes paid were made to a minimum, taxable person for VAT purposes were in arrears in paying taxes, and also taxable person for VAT purposes lack of understanding the concept of tax.
Surveys such as that conducted by (Mulyadi, 2011) have shown that one of the tax basis for VAT is how much production from a country, so the measure of VAT receipts is measured by comparing the receipt of VAT with Gross Domestic Product (GDP). The development of VAT receipts depends on the level of economic development of a country. If the economy of a country develops, production and consumption activities increase so that there is the potential to increase VAT revenues. Increasing GDP is always followed by an increase in VAT receipts, something that is reasonable considering the tax base also increases.
The more accurate measure of the effectiveness of VAT receipts is how much consumption of the people and government of a country (Mulyadi, 2011). The level of public consumption can be influenced by changes in the price of fuel, as shown in the research conducted by (Oktanto, Hasiolan, & Minarsih, 2015), that there is a significant negative effect of the increase in fuel prices on consumptive behavior in society. If the increase in fuel prices can be controlled, the consumer consumptive behavior will increase.

Theoretical Framework
The dependent variable of the admission of VAT is influenced by the five independent variables: the inflation, Exchange Rate, the amount of taxable person for VAT purposes, Gross Domestic Product, and fuel prices. As VAT is expected to be increase and give more contribution to the state revenue every year, the increase of inflation rate that make the selling price of taxable goods and services, will make the admission of VAT increase because the selling price of the taxable goods and services are the tax base for VAT. VAT is known as a tax on consumption where increased consumption means that there has been an increase in demand for goods and services.
However, the demand for goods and services is influenced by the price, if the price of fuel cannot be controlled and the depreciation of the rupiah exchange rate occurs, the purchasing power of consumers will decrease which will affect the VAT receipt. GDP is one of the method to calculate the national income where VAT is one of the contributor to the state revenue. The person who responsible for depositing VAT is taxable person for VAT purposes, then the amount of taxable person for VAT purposes will affect the VAT receipt.
Thus, the five independent variables considered here would significantly explain the variance in the admission of Value Added Tax. The inflation, amount of Taxable person for VAT purposes, GDP, and fuel prices positively affect the admission of VAT, where the exchange rate negatively affect to the admission of VAT.

Hypotheses
H1 : Inflation has a significant positive effect on the admission of VAT
H2 : Exchange rate has a significant negative effect on the admission of VAT
H3 : The amount of Taxable person for VAT purposes has a significant positive effect on the admission of VAT
H4 : Gross Domestic Product has a significant positive effect on the admission of VAT
H5 : Fuel Prices has a significant positive effect on the admission of VAT

Research Design
Study Design
This study uses quantitative research with the type of hypothesis testing research. Quantitative research is a research conducted to emphasize the analysis of numerical data that is processed by certain statistical methods. The numbers obtained will be further analyzed in data analysis. The data that will be used in this study are secondary data obtained from relevant institutions or agencies such as data from KPP Pratama Padang, besides that, also get data from BPS Kota Padang and related official websites.
Population and Sample
The population in this study is inflation data, the rupiah exchange rate, the number of taxable person for VAT purposes, GDP, fuel prices, and the number of VAT receipts in Padang in the period 2013-2017 taken in each month totaling 60 observations. The sample used is a technique for determining saturated samples, which is to use all members of the population to be used as samples. The data of these research is in the form of time series in the period 2013-2017 with monthly data, so the number of sample is 60 observations.
Variables and Measures
This study consists of six variables, which are Inflation, exchange rate, the amount of taxable person for VAT purposes, GDP, and fuel prices as independent variables and admission of VAT as dependent variables.
Data Collection Method
Data is collected by documentation method. The data that needed as the research data will be collected and recorded. The secondary data is obtained from official documents issued by the relevant agencies.