Factors affecting electronic invoice adoption and tax compliance process efficiency

Abstract

Purpose

The purpose of this study is to examine the factors that affect the adoption of electronic invoices and in turn the impact of these factors on the tax compliance process efficiency of companies.

Design/methodology/approach

A questionnaire survey was distributed to 276 users who adopted electronic invoicing. Partial least squares regression was used to analyze the collected data.

Findings

This study found that perceived benefits and trust in e-government had a positive influence on the adoption of electronic invoices. At the same time, the adoption of electronic invoice was found to have a positive impact on the overall efficiency of the tax compliance process. Moreover, the factors affecting adoption of electronic invoices can have a mediating effect on that adoption and tax compliance process efficiency.

Research limitations/implications

This study only explored these influencing factors on companies that have adopted electronic invoicing. Future research should distinguish between adopters and non-adopters.

Practical implications

The results of this study can guide tax authorities and other electronic invoice suppliers when promoting the adoption of electronic invoicing.

Social implications

This research can provide guidance to tax authorities to improve their own electronic invoice system by creating a workforce that have the skills to strengthen citizen’s trust in the electronic invoice system.

Originality/value

This study contributes to the electronic adoption literature by examining those factors that impact tax compliance processes efficiency.

Citation

Qi, Y. and Che Azmi, A. (2021), "Factors affecting electronic invoice adoption and tax compliance process efficiency", Transforming Government: People, Process and Policy, Vol. 15 No. 1, pp. 150-168. https://doi.org/10.1108/TG-04-2020-0070