Factors Affecting The Compliance Of Value Added Tax In Kiambu County
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This study primarily scrutinises the factors determining the extent of VAT compliance in Kiambu County. The factors considered included the taxpayer’s knowledge, compliance cost, fines and penalties, and taxpayer’s perception and attitude. The study acquired the data of taxpayers registered for VAT as per December 2018 from Kenya Revenue Authority. The study utilised a Binary Logistic regression analysis using SPSS to establish the influence of the identified variables on the extent of VAT compliance in Kiambu county. All the identified factors had a direct impact on the extent of VAT compliance in Kiambu county. The outcome of the analysis revealed that tax knowledge and understanding, and cost of compliance had a positive and significant impact on the level of tax compliance, whereas fines and penalties, and taxpayer’s perception and attitude had a positive and negative impact that was insignificant. From the findings, the study commends that KRA should enrich activities that promote tax knowledge and understanding since it is essential for VAT compliance.
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