Evaluating the Effectiveness of Digital Tax Administration on MSME Voluntary Compliance

Abstract Tax from Micro, Small, and Medium Enterprises (MSMEs) is a vital component of national economic growth and state revenue. To simplify reporting procedures, the government has implemented digital tax administration systems, such as e-Filing and e-Billing. However, this rapid digital transformation creates unintended challenges on the ground, particularly a digital literacy gap where older MSME demographics struggle with complex system interfaces. This digital divide can significantly hinder the expected increase in voluntary tax compliance. Therefore, an evaluation of the digital tax administration is necessary to ensure technological implementation is coupled with targeted digital literacy education to effectively increase regional revenue.