INSTRUMENTS FOR ENHANCING TAX DISCIPLINE IN THE CONTEXT OF EUROPEAN INTEGRATION: INTEGRATING REGULATORY AND BEHAVIORAL APPROACHES (EVIDENCE FROM THE EU AND UKRAINE)

Abstract

This article examines the instruments for ensuring tax discipline in the context of European integration, with particular emphasis on the interaction between regulatory (“hard”) and behavioural (“soft”) approaches. The study is based on a comprehensive analytical framework that combines economic, institutional, and behavioural perspectives on tax compliance. It explores the transformation of traditional deterrence-based models toward more integrated approaches that incorporate trust, tax morale, and service-oriented tax administration. The research highlights that while enforcement mechanisms remain essential for maintaining baseline compliance, their effectiveness is limited without complementary behavioural interventions. Drawing on the experience of the European Union, the paper demonstrates the growing importance of digitalization, risk-based management, and trust-based programs in enhancing voluntary tax compliance. A comparative analysis of EU and Ukrainian practices reveals that Ukraine is undergoing a transitional phase, characterized by the gradual adoption of service-oriented and behavioural tools. The findings support the conclusion that an effective system of tax discipline requires a balanced combination of “hard” and “soft” instruments. The study provides practical recommendations for improving tax administration in Ukraine, particularly in the context of wartime and post-war economic recovery.