| Abstract: | Tax administration is a component of public administration designed to control the processes and operations of
public revenues in accordance with new public management approaches which focuses on efficiency, performance
measurement and requirements of good governance.VAT is one of the indirect taxes levied on consumption where
the value of goods and services increases as they charge hands in course of production, distribution and final sales
to the uniform rate of 15% on most consumption of goods and services. Since VAT is applied on the value added at
each stage of production and distributions, it solves VAT is applied on the value added at each stage of production
and distributions, it solves the tax cascading effect and reduces tax evasion with its modern administration system
that sales tax cannot. Governments require tax administration and compliance to produce revenue from private
entities to provide public goods and services. Ethiopia needs to use domestic based resources mainly obtained form
tax like value added tax. The study will focus on addressing issues relating VAT administration factors affecting
VAT revenue performance. In order to generate appropriate VAT, its administration should be efficient. Therefore,
the study conducted on assessment of VAT administration effectiveness in Dilla town. The goal of this study is to
assess the problem of VAT administration and registration in Dilla town. The study raised major research questions
related to VAT registration, Administration, collection and Tax payers Service Delivery. To achieve this objective,
the researcher will use both qualitative and quantitative descriptive research designs and random sampling method.
The researcher will use questionnaires, interviews and relevant documents to collect primary and secondary data
from the data sources. Charts, graphs, table, percentages will use in analyzing the data (findings). Moreover, most
taxpayers lack sufficient knowledge of VAT thus, most of VAT payers do not know why they are paying taxes and the
applicable rules and regulations. Due to this and other factors mentioned in the analysis of this study, negligence,
delay in tax payment and evasion are taken by taxpayers. |
