<![CDATA[The rapid expansion of Indonesia's digital economy has created significant challenges for traditional tax administration and raised questions concerning the equitable taxation of domestic and foreign digital businesses. Indonesia has introduced mechanisms requiring foreign digital service providers to collect and remit value-added tax on digital transactions involving Indonesian consumers. This article examines the tax justice implications of these obligations, focusing on horizontal equity between domestic businesses and foreign digital service providers. Using normative juridical research and tax policy analysis, the study evaluates the legal framework governing VAT collection, registration, compliance, enforcement, and consumer-facing digital transactions. The article argues that digital taxation should ensure a level playing field without imposing disproportionate compliance burdens on smaller domestic businesses or creating unjustified advantages for large multinational platforms. The study proposes a tax justice framework based on neutrality, proportionality, transparency, administrative simplicity, and effective enforcement. Particular attention is given to the capacity of Indonesian tax authorities to monitor cross-border digital transactions and ensure consistent compliance. The article concludes that the taxation of foreign digital service providers should be designed not merely to increase state revenue but also to strengthen fairness within Indonesia's evolving digital economy.]]>
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