This study aims to identify the challenges faced by taxpayers in adopting electronic invoicing for value-added tax (VAT) collection and develop a framework for addressing these challenges based on their interrelationships within a developing country.
To establish a practical framework, a comprehensive literature review was conducted. The extracted factors were then presented to a panel of experts for validation or modification. Subsequently, this study employed a multi-criteria model based on DEMATEL and interval neutrosophic value set (INVS) to assist decision-makers in evaluating taxpayer challenges and identifying their interdependencies. This research adopts a mixed-methods approach, combining library research, expert interviews/consultations (qualitative) and a survey (quantitative).
The study suggests that taxpayer challenges can be categorized into six primary factors: distrust and security concerns, technical challenges, cost considerations, regulatory compliance challenges, cultural/demographic factors and lack of awareness. Key findings reveal that lack of awareness (X6) and cultural/demographic factors (X5) emerged as the most critical factors in terms of both importance and influence on other factors.
This study offers a more realistic understanding of cause-and-effect relationships, ultimately leading to more informed decision-making regarding e-invoicing adoption. The findings provide valuable insights for policymakers, guiding them towards effective practical implications.
This study differentiates itself from previous research by not only prioritizing factors influencing taxpayer e-invoicing adoption but also by examining the causal relationships between these factors. Unlike prior studies, this research has delved into the interdependencies among the prerequisite variables of e-invoicing adoption for VAT in a developing country. Moreover, to the best of our knowledge, no existing research has employed neutrosophic DEMATEL to address the uncertainty inherent in identifying the interrelationships among factors affecting e-invoicing adoption by taxpayers.
