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SMEs' tax compliance costs and IT adoption: the case of a value-added tax

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  • Azmi, Anna
  • Sapiei, Noor Sharoja
  • Mustapha, Mohd Zulkhairi
  • Abdullah, Mazni

Abstract

The objective of this study is to examine the factors behind the adoption of a tax-compliant accounting system among small and medium-sized enterprises (SMEs) using the technological–organizational–environmental (TOE) framework, particularly the role of tax compliance costs in fostering the adoption of this system. This study makes a novel contribution by attempting to link the influence of tax compliance costs to the information technology (IT) adoption literature. Questionnaires were distributed to 401 SMEs, and data were analyzed using partial least squares. The results suggest that the TOE framework is useful for examining factors that affect SMEs' IT adoption decisions; the influence of perceived compatibility, complexity, relative advantage, and mimetic and regulatory pressure is important for the adoption of a value-added tax (VAT)-compliant accounting system. Moreover, the impact of compatibility, learning from external sources, and perceived coercive pressure on the adoption of a VAT-compliant accounting system is moderated by tax compliance cost.

Suggested Citation

  • Azmi, Anna & Sapiei, Noor Sharoja & Mustapha, Mohd Zulkhairi & Abdullah, Mazni, 2016. "SMEs' tax compliance costs and IT adoption: the case of a value-added tax," International Journal of Accounting Information Systems, Elsevier, vol. 23(C), pages 1-13.
    • Handle: RePEc:eee:ijoais:v:23:y:2016:i:c:p:1-13
    DOI: 10.1016/j.accinf.2016.06.001
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    Cited by:

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    2. Samuel Otieno John, 2021. "Influence of iTax System on Service Delivery at the Kenya Revenue Authority," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(09), pages 191-197, September.
    3. Ahmad Farhan Alshira’h & Moh’d Alsqour & Abdalwali Lutfi & Adi Alsyouf & Malek Alshirah, 2020. "A Socio-Economic Model of Sales Tax Compliance," Economies, MDPI, vol. 8(4), pages 1-15, October.
    4. Habib Saragih, Arfah & Ali, Syaiful & Suwardi, Eko & Utomo, Hargo, 2024. "Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).
    5. Renyan Mu & Nigatu Mengesha Fentaw & Lu Zhang, 2022. "The Impacts of Value-Added Tax Audit on Tax Revenue Performance: The Mediating Role of Electronics Tax System, Evidence from the Amhara Region, Ethiopia," Sustainability, MDPI, vol. 14(10), pages 1-22, May.

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