Njuguna, Gladys Waigwe2021-03-222022-06-072021-03-222022-06-0701-11-20https://ikesra.kra.go.ke/handle/123456789/1315Tax is the most important stream of revenue for government’s development projects and services which includes, Health care, infrastructure, education and electricity efforts must be made by governments to ensure that it is accurately and efficiently collected to facilitate the government’s operations. In an effort to maximize collection of revenue and efficiency in tax administration, there must be fair and favorable tax policies to ensure maximum compliance among the tax payers. This study sought to discuss the factors that influence VAT compliance in Kenya, specifically focusing on SME’s operating within Thika town. This study was guided by measuring how availability of tax information to the taxpayer, taxpayer attitude and compliance cost affect value added tax compliance among the SMEs. The guiding theories for the study were economic (deterrence) theory, the Expediency theory of taxation and cost of service theory. This study employed a descriptive research design to determine the correlation between the independent and dependent variables. The target population was 1050. The research used a sample size of 290 SME’s selected from the target population for the study. This study used both primary data and secondary data. Primary data was collected using structured questionnaires with closed questions and secondary data was acquired from the Kenya Revenue Authority reports and from journals which represents academic research. The study used both descriptive and inferential statistics in analyzing the data collected while the regression analysis was used to ascertain the correlation that exist between the independent variables and dependent variable. The study established that the correlation between the independent variables was statistically significant with a p value of 0.00 which is less than 0.05. The findings were presented using frequency distribution tables and charts. The study concluded that tax information, taxpayer attitude and tax compliance cost affected value added tax compliance of SME’s operating within Thika town. Based on the findings the study recommends that the KRA should continue providing tax payer education to the tax payer so that they can understand the digital tax return system hence they can file their returns with no external sourcing which will lead to a low compliance cost and introduce tax education to students to create a positive attitude toward paying tax. The government can also create an exclusive social recognition to the compliance taxpayer acts as an incentive for more tax payers to join the compliance list, hence increase the level of VAT compliance. However, further studies can be done on 33.1% of the change in value added tax compliance factors which were not included in the modelenSMEValue Added TaxProjects