Challenges Of Vat Adminsteation And Compliance Behevior Of Tax Payers In Oromia Reginal State Jimma Town Revenue Authority

Abstract

This study examine challenges of VAT Administration and compliance behaviour of Tax payers in the case of Jimma Town Revenue authority. The Objective of the study would be particularly focused on challenges of Value Added Tax Administration and compliance behaviour of Tax payers regarding the Value Added Tax assessment, collection and implementation of Value Added Tax and to assess the main problems related to the Value Added Tax administration activities performance tax office, service delivery of tax office and voluntary compliance of tax payers in the case of Jimma Town Revenue authority. To achieve this objective, the researcher was used to descriptive research design and sample of Value Added Tax Registrants taxpayers and Tax officials of the Authority would be selecting using simple random sampling method and judgmental sampling method respectively. The researcher would use questionnaire and relevant documents to collect primary data and secondary data from sources of data. The Target Population of the study were employees of tax officials and VAT registered taxpayers at Jimma Town Revenue authority. A sample of 290 taxpayers would randomly taken from the 1,061 taxpayers in the Town but tax officers would judgmentally selected by the researcher in order to collect sufficient and relevant information required to prepare the report of this study. Charts and figure and percentage by computer using (Statistical Package for Social Sciences) SPSS Version 21 software would be used to analysing the collected data. Value added Tax Administration in Jimma town on one has faced different challenges. The main problems that encountered are the following such as: Lack of Awareness of Taxpayers, resistance against registrations for Value Added Tax by some traders, weak culture of taxpayers, poor Value Added Tax administration system.