The Mediating Role of Tax Awareness in The Relationship Between Digital Transformation and Sustainable Tax Compliance

Abstract

In the context of increasing digitalization across public sector systems, governments are investing in advanced tax technologies to enhance compliance, improve administrative efficiency, and promote fiscal sustainability. This study explores the mediating role of tax awareness in the relationship between digital transformation and sustainable tax compliance, using a structured review of 21 academic and empirical studies published between 2020 and 2024. Findings reveal that digital systems such as e-filing, e-invoicing, and AI-powered audits facilitate tax enforcement and accessibility; however, their impact on actual compliance is significantly enhanced when taxpayers are equipped with adequate knowledge, motivation, and trust. To translate these insights into actionable policy, the study proposes the Integrated Digital-Tax Awareness Model, a practical framework for tax authorities combining digital infrastructure with targeted awareness campaigns and educational outreach.

Conflict of Interest Disclosure: Murad Ali Al-Zaqeba, a co-author of this article, serves as an Advisory Board Member and Principal Contact of this journal. This relationship is disclosed here in the interest of editorial transparency.