Factors Affecting Value Added Tax Compliance Among Small And Medium Enterprise in Kenya
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Date
2022-09-01
Authors
Nasaye, Sylvia
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The purpose of this study is to establish the factors affecting VAT compliance in Kisii County.
The study was guided by the following objectives; to evaluate the effect of compliance cost on
VAT compliance in Kisii and to establish the effect of penalties and interest on VAT compliance
in Kisii County. The study adopted a descriptive research design. The target population during the study were people residing in and working at Kisii County. The study assumed a stratified random sampling method, the technique allows for equal representation and generalization of the collected data. During the study, a sample size of 150 respondents is preferred. The number is ideal as it cuts across all economic sectors operating within the county. During the study, questionnaires was used to enable collection of primary data. Qualitatively data was textually compiled and well arranged for purpose of explanation and description of findings which was assist in interpretation. The collected data was edited to check on any omissions and errors and was eventually coded. The study was then analyzed quantitatively using statistical data recorded in the Microsoft excel spreadsheet for easy presentation. The data was presented by use of frequency tables and charts. The result obtained was in determining the relationship between the independent and the dependent variables. Based on study finding, this study recommends there is need for effective cost management when administering tax. Reduction in cost of compliance will increase the number of registered traders which will increase Voluntary tax compliance. Kenya revenue Authority should
offer on a regular basis technical support to traders which will help them familiarize with tax
systems in order to facilitate voluntary tax compliance. Technical support will help traders reduce the transaction time in serving their clientele and transparency in service delivery.
Description
Tax Administration
Keywords
VAT Compliance, Small and Medium Enterprises