Effect of taxpayer education on Value Added Tax compliance on Small and medium Enterprises in Nairobi Central Business District, Kenya.
Loading...
Date
2020
Authors
Kikuvi, Elizabeth Mwende
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Value Added 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 Affecting taxpayer education on Value Added Tax Compliance among small and medium enterprise in Nairobi Central Business. The study had three specific objectives which were to: determine the effect of electronic taxpayer education, print media and stakeholder sensitization on Value Added Tax Compliance among micro small and medium enterprise in Nairobi Central Business. This study was grounded by three theories: Optimal Taxation theory, The Economic Deterrence theory and the Diffusion of Innovation theory. The study used descriptive research design and the population of this study was all the 120 small and medium enterprise in Nairobi Central Business that are registered for Value Added Tax Compliance. The study used both primary data and secondary data obtained from journals & relevant materials which represent academic research. Data was analyzed descriptive statistics and inferential statistics by use us SPSS (20) Data was presented on tables and charts. The finding of the study revealed that electronic taxpayer education, print media and stakeholder sensitization affects Value Added Tax Compliance of small and medium enterprise in Nairobi Central Business and the study was statistically significant with the evidence of p value was less than 0.05, ρ=0.000,0.007 & 0.000 . This study recommends that KRA to pay more attention on Tax adverts in social media which will help taxpayer to correctly declare their income. In conclusion electronic taxpayer education, print media and stakeholder sensitization had positive significant effect on Value Added Tax Compliance from micro small and medium enterprise in Nairobi Central Business. Therefore more study may be carried out by using different practices including cost of compliance to influence Value Added Tax Compliance.
Description
Project
Keywords
Value Added Tax, Taxpayer education, Value Added Tax Compliance, VAT