Abstract:
The general objective of this study was to assess the current practice and challenge of
VAT Administration of the Mekato No. 1 Medium Taxpayers Branch office. Thus, it is a
descriptive type of research. quantitative data analysis techniques were used. Primary
data were obtained with the help of close end questionnaire and interview from some of
VAT registrants and concerned VAT administration officer. probability and non probability sampling techniques was used to select appropriate and representative
sample size from
VAT administration officer. as a result, from 134 VAT administration officer.100 samples
were selected. Tax officials whose activity is directly related to Value Added Tax
assessment were selected. tables, and percentages were used for data analysis. ordinal
logistic regression was conducted included Pearson correlation. From the outcome of
the study the major obstacles that hinder VAT Administration shortage of well-trained
employees, especially in relation to operating the computer program which creates
difficulty in differentiating lack of employee capacity enhancement and affects the follow up and controlling activities, relatively low rate of controlling and monitoring system in
the branch office. Therefore, the following points are recommended. Monitoring and
controlling system shall be applicable, Enhancing the officer that performed their task
well. Increasing the tax office manpower in number and in very well qualified.
