Abstract:
Tax revenue is one of the fastest growing sectors of the economy in Ethiopia. Nonetheless, the
West shoa Zone VAT revenue collection performance has been inconsistent over the last five
2010/18-2014/22 years. The main Objective of this study was to identify the factors affecting
VAT revenue collection performance In Nono and Jibat Woreda revenue Office. The researcher
Has been used 64 sample size from VAT registered tax payers and 41 employees Using census
method from both Woreda, In total sample size of this study was 105. Cross sectional data was
collected based on the registry from 2018 to 2022, a Five years period .This study was carry out
using both quantitative and qualitative research approach. The study used both primary and
secondary data; primary data was gathered through the use of a structured questionnaire, focus
group discussion and interview while secondary data was obtained from annual reports .The
survey data analysis methods such as mean, Standard deviation, frequency, Analysis of variance
and percentages were analyzed by using STATA (Statistical Data Analysis) Software descriptive
statistics. To determine the relationship between the dependent and independent variables, a
correlation andmultiple regression analysis were performed. The regression result shows that
Modern technology usage, educational status of Taxpayers, Enforcement, and VAT
Administration policy have positive and significance influence on the performance of VAT
collection whereas, Fraud have negative and insignificance influence on the performance of VAT
collection. Finally, based on the findings researcher conclude thatAccording to the descriptive
statics result the VAT Administration policy has below midpoint average mean score which
means the administration policy. The recommendation given were include; Both Woreda
revenue office should increase the number of Modern technology usage that is Continuous
supply of cash register machine, Minimize VAT fraud activities, establish effective enforcement
mechanisms, Educational status of tax payers is significant. Therefore, revenue office officially
should announce short and long term training programme. In addition revenue office should
properly and consistently implement VAT Administration policies to develop its consumer
relationship strategy for the future, and to improve client loyality in reference to improving on
competencies and integrity of tax payers.
