Waithaka, Simon G.2020-03-032022-06-072020-03-032022-06-072019https://ikesra.kra.go.ke/handle/123456789/689PROJ 343.73 WAIiTax refers to tax accounting system based on a web-enabled platform that pursues endeavor to simplify, secure and make compliance with tax laws convenient and cheap to the taxpayers and minimizes interaction between taxpayer who are the customer and the agency’ staff. The study sorts to investigate impact of iTax system on Value Added Tax Compliance among the Small and Medium Enterprises dealing hardware business in Starehe Sub-county. The specific objectives were; examine effects of tax Knowledge and Technical Skills on Value Added Tax Compliance, how compliance cost and how taxpayers’ perception affects Value Added Tax Compliance. The research employed descriptive research procedures and design targeting a population of all the Value Added Tax Registered Small and Medium Enterprises dealing in hardwires business in Starehe Sub-county which are approximated to be 737 registered Small and Medium Enterprises within the Starehe Sub-County. A minimum sample size of 74 respondents was chosen, representing 10% of the population dealing in the business of Starehe Sub-County. The stratified random sampling and simple random sampling method was employed and primary data was collected from the responds. Both descriptive analysis and inferential analysis (multiple regression, Correlation, one-way Analysis of Variance and Chi-square). The finding of this research shows that lack of taxpayer’s knowledge on taxation increases the cost of tax compliance thus negatively affecting VAT compliance thus taxpayers will create a kind of resentment against authorities with too complex tax systems. The research concludes that the level of education received by taxpayers is an important factor that contributes to their understanding of tax responsibilities. Compliance costs, in form of fees charged by tax consultants, are positively correlated with noncompliance behavior and thus negatively correlated with tax compliance behavior.enCompliance costsTax avoidanceProjects