ASSESSMENT OF VALUE ADDED TAX AND REVENUE PERFORMANCE –THE CASE OF ETHIOPIAN REVENUE AND CUSTOM AUTHORITY ADDIS KETEMA SUBCITY BRANCH OFFICE

Abstract

The major objective of the study is to assess VAT administration and revenue performance of Addis Ketema tax administrative center. To achieve, the overall objective, the study specifically focused to address basic research questions area such as, assessing challenges of the office in administrating tax, assessing VAT compliance on the administration system, the office monitoring and evaluation system of VAT registrants and indicate revenue performance of the sub city. To address the area relevant data were collected both from tax officials and VAT registrants and the major findings implied that VAT administration and revenue performance of the studied tax center affected by illegal activity of tax officials and VAT payers, inadequate work forces, poor filling practices, poor compliance and administrating practice. All the constraints sum up results the branch to have poor VAT administration practice and revenue performance. Based on the finding the study recommend some of the corrective measures like for those VAT registrants who engaged in illegal act due to lack of awareness the study suggests that, tax office need to increase qualified man power and strengthen awareness and inspection service of VAT registrants. The other major challenges were VAT filling, VAT claim , invoice overstatement, and accomplishment of task in a long period, to minimize those problems the study suggests that the tax office should improve its execution through digital (automation) tax system.