Assessments of Value Added Tax (VAT) Administration in Guraghe Zone Revenue Authority

Abstract

The main objective of the study is to assess VAT administration in Guraghe zone revenue authority. In doing so, the paper further assesses the VAT revenue performance to total revenue and the planed VAT. The study used both qualitative and quantitative research methods to collect and analyze both primary and secondary data. Questionnaires and schedule was used to collect primary data from employees and VAT registered respectively. Secondary data was collected from Guraghe zone revenue authority. The Statistical Package for Social Sciences (SPSS) version 20 was the method used for data analysis. The study paper discovered that lack of awareness about vat, Laws and procedures not clear and simple, Fraud off tax collectors and Unwillingness of tax payers to register for VAT  are the main challenge in Vat implementation and Consumers unwillingness to buy goods and services with VAT, Poor tax enforcement capacity of the authority, Use of fraudulent invoices and non-issuance of invoices and VAT tax payers are less competition in the market than non VAT tax payers are the main challenge in Vat administration process. The study also find-out that vat revenue is increasing from year to year and it will contribute a lot to economic growth of the country but actual VAT collection performance is not as the authority planed. The paper suggests that the authority should maintain intensified awareness creations programs and enforcement and it should teach the business community about the concept of VAT, the authority should increase the number of qualified employees, strengthen its controlling mechanisms, and improve its administrative systems, and the society should also have knowledge about the VAT rules and regulations and accept and obey the existing VAT rules and regulations.

Keywords: Value Added Tax, Tax Administration,

DOI: 10.7176/RJFA/10-7-01

Publication date: April 30^th 2019