Norhasliza Zainan¹, Rohaya Md Noor¹, Normah Omar², Roszainun Abd Aziz¹, and Soliha Sanusi^2
1Faculty of Accountancy, Universiti Teknologi MARA
²Accounting Research Institute

ABSTRACT

The study investigates the relationship between Goods and Services Tax (GST) compliance among Malaysian retailers during the initial stage of GST implementation in Malaysia. By using the sociological and psychological approaches, a total of 500 survey questionnaires were distributed during GST workshops conducted by the tax authority. Multiple regressions were employed to examine the relationship between behavioural factors: tax knowledge, perceived tax complexity and perceived tax fairness and GST compliance. The statistical results found that 77.7% of the identifying behavioural factors were explained to the level of GST compliance. The findings disclosed that tax knowledge, perceived tax complexity, and perceived tax fairness were significantly and positively affecting GST compliance. Thus, the study result could possibly contribute to the body of knowledge in lieu of GST compliance, as well as being an input to the tax authority that tax education programme is an important and effective mechanism to enhance the retailers’ understanding of their GST obligations and compliance level.

Keywords: Goods and Services Tax, Sociological and Psychological approaches and Tax Compliance.