1.2022

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Browsing 1.2022 by Subject "Tax compliance, Value added Tax"

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    Factors affecting Value Added Tax compliance among manufacturing firms in Meru County.
    (2022) Munyao, Damaris
    Tax compliance is important as it has a direct impact on revenue for most governments around the world. Despite the reforms that the Kenya Revenue Authority has been undertaking so as to increase tax compliance it has of late failed to meet its revenue targets particularly Value Added Tax targets. This shows that there is a problem with Value Added Tax compliance in Kenya and this challenge forms the main motivation for undertaking this study. The general objective was to establish factors affecting value added tax compliance among manufacturing firms in Meru County, Kenya. while the specific objectives were to establish the tax awareness on Value Added Tax compliance in among manufacturing firms in Meru County, to determine the effect of cost of compliance on VAT compliance among manufacturing firms in Meru County and to establish the Value Added Tax audit on VAT compliance among manufacturing firms in Meru County The study was guided by The Fiscal Exchange, economic deterrence theory and transaction cost theories. The target population was 63 manufacturers in Meru town. The study will adopt the descriptive research design and census survey in data collection. This study will use primary data Primary data will be collected using structured questionnaires with closed questions Data was analyzed descriptive statistics and inferential statistics and presented on tables and charts. The finding of the study revealed that tax awareness, cost of VAT, VAT Audit affects VAT compliance among manufacturing firms in Meru County and the study was statistically significant with the evidence of p value was less than 0.05, ρ=0.002, 0.001 & 0.000 .In conclusion tax awareness, cost of VAT, VAT Audit had positive significant effect on VAT Compliance from manufacturing firms in Meru County. The study recommends that Kenya Revenue Authority management should make taxpayers aware that value added tax is computed, filed and tax due is paid on or before the 20th of every month succeeding the month in which sales are made. Therefore, it is suggested that more studies can be conducted using other variables such as the effect of environmental factors on VAT compliance among manufacturing firms in Nairobi County Kenya