The Moderating Effect of Tax Service Quality on The Relationship Between Tax Education and Rural SMEs Tax Compliance Behaviour In Ghana

Abstract: The role of tax education and service quality in recent year has gained renewed attention in tax policy and compliance discussions, especially within developing economies where revenue mobilization challenges persist. This study shifts from conventional approaches by exploring how quality of tax service can affect the relationship between tax education and tax compliance behaviour among Small and Medium-Sized Enterprises (SMEs) in Ghana. A cross-sectional and correlational research design was employed, using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyse data from 381 SME operators. The findings revealed a strong positive relationship between tax education and tax compliance behaviour, indicating that increased awareness of tax responsibilities enhances voluntary compliance. Additionally, tax service quality independently showed a significant positive effect on compliance behaviour. Most notably, tax service quality was found to significantly moderate the relationship between tax education and tax compliance, suggesting that the impact of education is strengthened in environments where taxpayers experience professional, responsive, and accessible service delivery. The study puts forward a recommendation for tax authorities to enhance both the clarity of educational materials and the quality of taxpayer engagement. Furthermore, integrating tax education into vocational and entrepreneurial training could foster greater understanding and willingness to comply, especially among SME taxpayers who often operate in the informal sector.