FROM DIGITAL PAYMENT TO COMPLIANCE: INVESTIGATING THE MODERATING ROLE OF TAX EDUCATION IN ELECTRONIC BILLING SYSTEM

Abstract

Digital transformation in the tax system has created significant opportunities to improve the efficiency and effectiveness of tax collection. This study aims to examine the Moderating Role of Tax Education in Electronic Billing Systems through digital payments for compliance. This is very important to ensure that taxpayers comply with the required tax obligations in order to achieve the predetermined revenue targets. In this case, the taxpayer in question is the Regional Apparatus Organization (OPD) responsible for the implementation of regional government tasks under the Regional Head. This research uses a quantitative methodology with a survey approach. Data were collected through questionnaires distributed to all treasurers of OPD organizations in Solok Regency and City, and 50 samples were obtained from this number. The data were processed using SEM-PLS analysis through the help of Smart-PLS. The results showed that tax socialization and digital payments have a significant effect on taxpayer compliance. However, tax socialization does not moderate the relationship between digital payments and taxpayer compliance. This is due to the tendency of taxpayers to choose digital payments that are based more on considerations of transaction convenience and efficiency, not because of the direct influence of tax socialization that has not specifically encouraged compliance through digital media. The coefficient of determination of 0.571 indicates that 57.1% of the variation in taxpayer compliance can be explained by the digital payment variable, tax socialization, and the interaction between the two in the model. Thus, this model has a fairly good predictive ability in explaining the factors that influence taxpayer compliance. Meanwhile, the remaining 42.9% is explained by other factors outside the model, such as the level of understanding of tax regulations, tax authority supervision, the quality of tax administration services, and the use of technology in the tax reporting system. These findings emphasize the importance of a more holistic approach in improving taxpayer compliance, including increasing digital literacy and trust in the tax system.