<![CDATA[The growth of e-commerce has transformed retail markets in Indonesia and created new challenges for tax administration. Traditional retailers are generally subject to established tax obligations, while small online sellers may operate through informal channels with varying degrees of tax compliance. This situation raises concerns regarding horizontal tax equity between businesses conducting economically similar activities through different distribution models. This article examines the tax justice implications of Indonesia's taxation of e-commerce businesses. Using normative juridical research and policy analysis, the study evaluates income taxation, value-added tax, digital transaction reporting, and platform-based compliance mechanisms. The article argues that tax neutrality requires comparable economic activities to be treated consistently while recognizing differences in the administrative capacity of micro-scale online sellers. The study proposes a differentiated compliance framework combining platform-assisted reporting, simplified obligations for micro-businesses, taxpayer education, and stronger enforcement for large-scale commercial sellers. Such a framework would reduce unfair competitive advantages arising from differences in tax compliance rather than differences in business efficiency. The article concludes that digitalization should be used to simplify tax compliance and improve enforcement while avoiding excessive administrative burdens on small online entrepreneurs.]]>
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