Smart Tax and Customs Integration and Compliance in Jordan

Abstract

Digital connections between tax reporting and customs clearance create an opportunity to examine how financial information systems relate to firms’ compliance behaviour. This study examines the relationship between smart tax and customs integration and tax and customs compliance among Jordanian import–export companies, with perceived administrative efficiency as a mediator. It positions integration at the interface of digital accounting, financial technology and regulatory technology, while considering its implications for sustainability. The research uses a quantitative, cross-sectional survey design with a sample of 159 respondents. The proposed analysis applies partial least squares structural equation modelling to estimate the direct relationships and the indirect relationship through perceived administrative efficiency. The framework distinguishes the availability of connected digital functions from firms’ assessments of the administration that uses them. Sustainability is considered through potential improvements in the use of administrative resources, the reliability of public revenue processes and accountable institutional practice. Environmental benefits require separate evidence. The study develops a testable explanation of how integrated financial and regulatory information may support compliance, without treating digitalisation itself as proof of sustainable performance. PLS-SEM results based on the 159 respondents support all four hypotheses: smart tax and customs integration is positively associated with perceived administrative efficiency, perceived administrative efficiency is positively associated with compliance behaviour, integration retains a positive direct association with compliance once administrative efficiency is controlled for, and the indirect association through administrative efficiency is positive and statistically significant, consistent with partial mediation.