Assessment of Value-Add Tax Collection Problems: The Case of Addis Ketema Sub-city, Addis Ababa

Abstract

Value-added tax is a tax levied on community consumption goods. The study was conducted to answer the research questions about what procedures used by the branch for that amount of collection, that amount of collection, what is the level of awareness of taxpayers and the way the branch administrative VAT. The primary data were collected through a structured questionnaire on the knowledgeable sample of employees, senior taxpayers were selected to identify the main problems of VAT payers. The analysis was carried out using Microsoft excel and average, percentage. This implies that one of the basic reasons was lack of awareness about VAT among the taxpayers and consistent sources of evidence about VAT implementation. According to an employee’s response was unable to attend a serious awareness creation consultative meeting organized by the Ethiopia ministry of revenue (EMR), knowledge and skill gap about VAT Administration, being careless and lack of attention are some of the causes which result in less awareness. The results showed that the majority of the EMR as employees VAT and Taxpayers well-understand the importance of VAT towards the development of the country. Therefore, there is a better level of awareness on the way VAT collection is implemented among employees.

Keywords: VAT, Collection, and Problem

DOI: 10.7176/RJFA/11-3-01

Publication date: February 29^th 2020