Exploring the Links Between Tax Education, Tax Awareness and Tax Compliance Among Students in Vietnam

Abstract

In Vietnam, tax non-compliance remains a significant issue, contributing to a large tax gap, and improving voluntary compliance is crucial for the country’s economic growth. This research contributes to understanding how tax education influences compliance through awareness, addressing a gap in the literature, particularly in emerging economies like Vietnam, and offering valuable insights for regional economic development strategies This study investigates the relationship between tax education and tax compliance, focusing on the mediating role of tax awareness among university students in Vietnam as future taxpayers. A quantitative approach was applied with a sample of 513 university students from various institutions across Vietnam. The survey was distributed through both direct email and online platforms to ensure diversity in responses. Data was analysed using SPSS 25, with Cronbach’s Alpha used to assess reliability and Confirmatory Factor Analysis to evaluate the measurement model. The findings from Structural Equation Modelling reveal that tax awareness significantly mediates the relationship between tax education and tax compliance, with a positive impact on compliance behaviour (coefficient = 0.777*, p = 0.000). However, tax education alone showed no direct effect on compliance behaviour (p = 0.218). Based on these results, the study suggests several policy recommendations: (1) enhancing tax education programs through transparency and technology, (2) integrating tax education into early curricula, and (3) using interactive e-tax platforms to increase accessibility. These strategies aim to promote tax compliance and contribute to sustainable economic growth in Vietnam and similar emerging economies.