The Effect of Peer Influence on Sales Tax Compliance Among Jordanian SMEs

The purpose of this study is to examine the impact of peer influence on sales tax compliance of Jordanian small and medium enterprises (SMEs). While the impact of peer influence on income tax compliance has been examined by prior research, the effect of peer influence on sales tax compliance of SMEs has been neglected. Therefore, this study is the first to examine this relationship among Jordanian SMEs. A questionnaire has been used to collect data from the study sample, which consisted of 212 owner-managers of SMEs. The research hypothesis was then tested using PLS-SEM software. This study provides the first evidence that peer influence has an insignificant impact on sales tax compliance among Jordanian SMEs. According to the finding, the implications of the study as well as suggestions for future studies are also discussed.