1.2022

Permanent URI for this collection

http://10.150.1.119/handle/123456789/2618

Browse

Browsing 1.2022 by Subject "Tax compliance, value Added Tax,"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Factors influencing Value Added Tax compliance among small and medium enterprises in Kangemi area, Nairobi county, Kenya.
    (KESRA/JKUAT, 2022) Masau, Catherine
    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 revenue collection, it has of late failed to meet its revenue targets particularly VAT targets. This shows that there is a problem with VAT compliance in Kenya and this challenge forms the main motivation for undertaking this study. In realization of this situation, this study aimed at assessing the factors influencing value added tax compliance among small and medium enterprises in Kangemi area, Nairobi County, Kenya. The study had three specific objectives namely: To determine the effect of taxpayer education, systems reliability and compliance cost on value added tax compliance among small and medium enterprises in Kangemi area. This study was guided by four theories: Economic deterrence theory of tax compliance, Transaction cost economics theory, The ability to pay theory and Theory of technology acceptance. The study used descriptive research design and the population of this study was 120 and a sample size of 91 small and medium enterprises in Kangemi area that are registered for VAT compliance. The study used primary data. Findings indicated that taxpaer education was significant on VAT compliance with(0.000 ρ < 0.05),systems reliability was significant on VAT compliance with(0.005 ρ < 0.05) and compliance cost was significant on VAT compliance with (0.007; ρ < 0.05). The study concluded that taxpayer education, systems reliability and compliance cost affect VAT compliance. Based on the findings the study recommends on systems reliability that the KRA should enhance systems availability to encourage tax payers to be more compliant. Therefore, further research should focus on other variables such as effect of deterrent measures on Value Added Tax performance