Studies On Effect Of Electronic Tax Registers Machine Onvalue Added Tax Compliancee At Ginch Town, Dendi Woreda Revenue Authority, West Shewa Zone, Oromia Regional State, Ethiopia

Abstract

The main objective of the study was to assess the effect of Electronic Tax Registers (ETRs) machine technology on the Value Added tax compliance amongst VAT registered taxpayers, taking the case of Ginch town. To achieve the above objective quantitative research method was selected for this study. The data required for this research were collected from primary sources which had been obtained directly from taxpayers through the use of close ended self- administered structured questionnaires with the help of Likert type items, each with a 5-point scale, running from “Strongly agree” to “Strongly disagree” from respondents. Purposive sampling technique was employed to select a representative sample from the two classes of taxpayers. From 125 VAT registered individual tax payers and pay their tax in Ginch town 96 tax payers were taken for the study. Besides, Descriptive and inferential method used for data analysis statistically treated using statistical package for social science (SPSS) version 20. Tables, frequency, and percentages were used to present results of the analysis. To answer the research objectives and questions regression analysis was utilized where independents variables of the study were only able to explain 68.1% of the VAT compliance and a 31.9% of the change being explained by other factors. The study found out that there is statistically significant relationship amongst tax knowledge and education, trust and power of tax authority, use of ETR, Fine and Penalty with VAT compliance with the p-values which are less than a significant level of 0.05.The study recommends that the Ethiopian Revenue and Customs Authority (ERCA) should strengthen the use of ETRs machines among taxpayers in the country by instituting different measures, policies and initiatives on the area of ETRs machines.