Developing an Integrated Framework for Managing the Technical and Implementation Challenges of Value-Added Tax Administration within Iran’s Taxpayer System

Abstract

This study aimed to develop and empirically validate an integrated framework for managing the technical and implementation challenges of value-added tax administration within Iran’s Taxpayer System. This study employed an exploratory sequential mixed-methods design. In the qualitative phase, semi-structured interviews were conducted with 18 experts in taxation, accounting, the Taxpayer System, financial management, and tax-related information technology using purposive sampling until thematic saturation was achieved. The qualitative data were analyzed through thematic analysis and used to identify the principal dimensions and components of the conceptual framework. In the quantitative phase, a researcher-made questionnaire derived from the qualitative findings was administered to 250 tax experts, taxpayers, accounting and auditing professionals, financial specialists, and technical professionals familiar with the Taxpayer System. Content, construct, and convergent validity were examined, while reliability was assessed using Cronbach’s alpha and composite reliability. Quantitative data were analyzed using SPSS and structural equation modeling. The structural model demonstrated acceptable fit indices (χ²/df = 2.41, RMSEA = 0.075, SRMR = 0.054, CFI = 0.936, TLI = 0.928, IFI = 0.937, NFI = 0.914). Technical infrastructure challenges (β = 0.34, p < 0.001), executive and procedural challenges (β = 0.29, p < 0.001), human and organizational readiness (β = 0.25, p < 0.001), and taxpayer-centered challenges (β = 0.27, p < 0.001) significantly predicted integrated management capacity. Technical infrastructure challenges (β = -0.23), executive and procedural challenges (β = -0.28), and taxpayer-centered challenges (β = -0.19) negatively predicted implementation effectiveness, whereas human and organizational readiness positively predicted it (β = 0.21); all effects were significant at p < 0.001. Integrated management capacity was the strongest positive predictor of implementation effectiveness (β = 0.48, p < 0.001). The model explained 57% of the variance in integrated management capacity and 63% of the variance in implementation effectiveness. Effective VAT administration within Iran’s Taxpayer System requires an integrated governance approach that simultaneously addresses technical infrastructure, procedural complexity, organizational readiness, taxpayer heterogeneity, stakeholder coordination, and adaptive management.