Practices And Challenges Of Vat Administration In Addis Ketema Sub City A Case Of Merkato No-1 Medium Tax Payer Branch Office

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.