Professional Documents
Culture Documents
ACCOUNTING DEPARTMENT
COLLEGE OF BUSINESS AND ECONOMICS
JIMMA UNIVERSITY
May, 2012
1
JIMMA, ETHIOPIA
2
ACKNOWLEDGMENT
The over all gratitude is goes to my famous Advisor Mr. Daniel Tolesa, for his
help through providing the direction regarding how to make study.
At last but not least I want to say thanks for all Jimma University teacher,
particularly these of College of Business and Economics, who thautht me and also
I want to say thanks W/t Bertukan Tilahun for typing this Research paper.
I
ABSTRACT
Assessment of the research was based on the VAT collection problem in west
Haraghe Zone in land Revenue Authority.
The general objective of the study was to identify the major problems of VAT
collection that faced west Hararghe Zone in Land Revenue Authority.
The methods of data collection used by the researcher was primary and secondary
data collection techniques in order to reach the aim of the study.
The major findings of these assessment were lack of awareness, absence of VAT
payers, prevention of VAT evasion and avoidance is low, shortage of human
resource in the organization etc. Finally, recommendation was given based on the
major findings of these study.
II
TABLE OF CONTENTS
Contents page
Acknowledgement ------------------------------------------------------------------I
Abstract-------------------------------------------------------------------------------II
Table of content -------------------------------------------------------------------III
List of Tables------------------------------------------------------------------------IV
List of Abbreviations----------------------------------------------------------------V
CHAPTER ONE
1. INTRODUCTION ...........................................................................…1
1.1 Back ground of the study ...................................................................…1
1.2 Background of the Organization ........................................................….3
1.3 Statement of the problem....................................................................…4
1.4 Objectives of the study (central and specific)-------------------------------5
1.5 Significance of the study-------------------------------------------------------6
1.6 Scope of the study .............................................................................….7
1.7 Limitation of the study ......................................................................….7
1.8 Organization of the paper....................................................................…7
CHAPTER TWO
2 Review literature ---------------------------------------------------------------8
2.1. Value added tax --------------------------------------------------------------8
2.2 Computation of VAT ----------------------------------------------------------9
2.3 VAT administration in Ethiopia ---------------------------------------------9
2.4 VAT refund --------------------------------------------------------------------10
2.5 Registration --------------------------------------------------------------------10
2.5.1 A. obligatory registration --------------------------------------------10
2.5.2 B. voluntary registration --------------------------------------------10
2.6 Benefit it voluntary registration ---------------------------------------------11
2.7 Registration procedure--------------------------------------------------------11
2.8 Application for registration --------------------------------------------------11
III
2.9 Time of registration------------------------------------------------------------12
2.10 cancellation and registration -----------------------------------------------13
2.11 Input VAT claim of the time of cancellation ----------------------------14
2.12 Advantage and disadvantage of VAT ------------------------------------15
CHAPTER THREE
RESEARCH DESIGN AND METHOLOGY
3 Methodology of the study.........................................................…….. 17
3.1 Research design ....................................................................……… 17
3.2 Types of data source and collection ......................................………. 17
3.3 Sampling size and Techniques ...........................................……… 17
3.4 Data analysis and interpretation ............................................……. 18
CHAPTER FOUR
4. Data presentation and analysis .................................................………19
CHAPTER FIVE
5. Summary and conclusion and recommendation ........................………30
5.1 Summary and conclusion ................................................. ….. 30
5.2 Recommendation ....................................................................……. 31
References ..............................................................................……… 32
Appendix…………………………………………………………… 33
IV
LIST OF TABLES
V
LIST OF ABBREVIATIONS
VI
CHAPTER ONE
1. INTRODUCTION
Background of the Study
Emergency and rapid spread of VAT is one among the most dramatic and most
important tax development of the later twentieth century and still continues;
(Misrak, 2011 p.314). VAT was invented in 1954 by A French economist Maurice
laurie was joint direlctor of the French tax authority, a though Geman industrialist
Dr. Wilhelm Von siemens proposed the concept in 1918 (Misrak, 2011 p.314). By
1969; only eight nations had adopted VAT, out of the COTEDEVOR was the first
country in Africa to introduce VAT in 1960. Brazil from Latin America and Japan
from Asia were also among the first group of countries that introduced VAT in
their respective continents (Misrak, 2011, p.314).
The need for value added tax (VAT) cames from the very weakness of the sales
tax that’s intended to replace (Gebrie, 2008, p,225).
1
Every import of goods in to Ethiopia by an importer whether or not the importer is
VAT registered person is liable to charge of VAT, an less the goods are exempt
one. The importer is charged VAT in his import of goods regardless of whether
the goods are imported for private or business purposes (Misrak, 2011 p. 390). A
taxable import of good is chargeable to VAT based on the value of the import. The
value of the import is the sum of the cost of import determined in accordance
with the custom lagislation of Ethiopia, custom duties on import, and tax payable
upon the import of the goods in to Ethiopia, excluding value added tax, sur tax and
with holding income tax (misrak, 2011 p.391)
2
1.2 Background of the Organization
To days west Hararghe Zone Revenue Authority (office) first established in 1961
as dependent organization under finance of Chiro town which is known as “
Baseront Tsifatbet” at that time. Upto the year reestablished in 1997 by the
proclamation no 98 by holding the new name west Hararghe zone revenue office
independently. West Hararghe zone inland Revenue Authority have 150
employees as zone from the total 150 employees, 50 of them are females and 100
are males.” But west Hararghe from the total of 30 employees 20 are males and 7
are females .
The objective of west hararghe zone revenue office has mission and vision. The
vision of Revenue Authority is to prosvide fair and modern tax administration and
to satisfy the needs and wents of tax payers.
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1.3 Statement of the Problem
Obviously now a day most of the countries in the world are applied VAT.
Although the rates for computation of VAT lability vary from country, collection
of VAT is now aday widly applied (Gebrie 2008,p 206). Etiopia is one of the
country which applied VAT system (Misrak, 2011 p.330). Sine it is newly
introduced types of tax, both VAT collection and tax payers might have their own
reservation colleclion of VAT. The impact of the problem by these two parties
extendes to the interest of the business people who are not registered for VAT and
to the interst of the society at large. There fore this study tries to answer the
following principal question.
4
1.4 Objective of the study
1.4.1 General objective of the study was to identify the major
problem of VAT collection faced by west Haraghe zone inland
Revenue Authority.
1.4.2 Specific objective of the study
5
1.5 Significance of the Study
Government organization like west Hararghe zone inland Revenue Authority
(WHZILRA) business enterprise, school and some VAT registered enterprises are
expected to be beneficiary from this study. Accordingly the research would have
been the following benefits.
1. The recommendations to be provided might be useful in directing decision
toward controling the problem of west Haraghe zone inland Revenue
Authority.
2. The issue discuss might contribute to filling the gap on VAT.
3. It makes acceptance of data available on VAT that serves as secondary
sources document.
4. It might initiate further studies of greate width and depth
5. It will help to create responsible citizen
6. It will help merchants other parties and have a better knowledge about
VAT.
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1.6 Scope of the Study
This study was focus on VAT collection problem of west Hararghe zone inland
Revenue Authority.
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CHAPTER TWO
LITERATURE REVIEW
1. Value added tax (VAT)
Introduction
VAT is a tax on the value added tax to goods and services by enterprise. It arises
when ever a” taxable person” make “supply of goods or services” in the course of
his business. The salient elements embodies with in the definition given above and
their connotation are as follows.
Consumption/ expenditure tax; VAT is a tax levied by a government on goods
and gervices to be sold or imported rather than income to be generated by
persons. Aperson is charged VAT only when he spends his money to purchase
goods and service subject to VAT. In other words, VAT is charged by
government only on a person’s expenditures on a goods and services subject to
it.
Value add: VAT is tax levied by government not on the total value of goods
sold or service rendered but only on the incremental value. At the end of the
chain the total amount tax paid on a given commodity is determined only by
the tax rate and the final price of the commodity, required less of the number of
stage through which is passed what has been collected in fractional payments is
equivalent to a single stage tax on the value of the final product (Misrak, 2011,
p,307).
The theory is that the end consumer curves the burden of VAT not the business,
which is merely collecting the VAT on behalf of tax authority. But the reality is
not quite so simple. For fully taxable business VAT is not cost but it is merely an
accounting headache what ever you collect on out put tax must be hand over to tax
authority, what ever you pay in put tax can be recovered from tax authority (a part
from in put VAT on personal passenger) vehicle and entertainment has taken care
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full on purchase and sales of taxable supplies otherwise VAT will affect his or her
cost flow (Misrak, 2011, p.318).
2.2 Computation of VAT
In modern taxation there are four types of value added tax system, there are:
a. Gross predict value added fax
b. In come tax value added tax
c. Capital exemption type value added tax
d. Consumption type value added tax (Gebrie, 2008, p.190).
The VAT replaced the current sales tax on manufacturing and imported goods and
services on January 1, 2003. The responsibility for the correct calculation and
timely payment of VAT rests on the tax payer him self. The VAT is abroad based
tax on the consumption of goods and services. It is collected at all stages in the
production and distribution process beginning of raw materials and ending with
the retailers cascading of the (i.e tax on tax) is avoided by providing for credit for
tax the paid only to raw materials used directly in the production of goods under a
VAT (Gebrie, 2008.p.191).
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2.4 VAT Refund
VAT refund Peron shall got refund
It a least 25% of the value of registered person’s taxable transactions for the
accounting period other registered person in single transaction of substantially all
of the asset of taxable activity provided a notice in writing signed by the transferor
and transferee is finished with in 21 days after the supply takes place is taxed at
zero- rate the authority shall refund the amount of VAT applied as accredit in
excess of the amount of VAT charged.(misrak 2011,p.387).
For the accounting period with a period of two months after the registered person
files an application for fund, accompanied by the documentary proof of payment if
the excess amounts (Misrak, 2011.p.387).
2.5 Registration
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2.6 Benefit of voluntary registration
In put VAT can be recovered if a person registered. It will therefore be beneficial
to voluntarily register where the person. Makes mainly zero -rated supplies. In
such a case, in put VAT will be recovered and so VAT will be charged on zero
-rated outputs, (Gebrie, 2008,p,203).
11
Application for compulsory aswellas voluntary registration must be made on form
VAT “application for VAT registration” this is issued by FIRA/VAT. Once on
application for VAT registration has been made (Dr.Ramaswami parames waran,
2005, p.251).
2.9 Time it Registration
Registration takes place one of the toning dates, depending on which date comes
first:
A. in case if obligatory registration on the first day of the accounting period
following the month in which the obligation to apply for registration arose ;
B. in the case of voluntary registration, on the first day of accounting period
following the month in which the person applied for registration.
C. On the date selected by the registered person on his application for
registration.
The authority is required to establish and maintain a VAT register containing
detail of all persons registered for VAT. If a person is required to register for
VAT and has not applied to register, the authority may register the person on
its own initiative and send to the registered Peron the certificate as mentioned
in this art. A person registered for VAT is required to use his taxpayer
identification number (TIN) on all VAT invoice, and on all returns and official
communications with the authority (Dr. Ramaswami parames waran,
2005,p.251).
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2.10 Cancellation of registration
VAT registered person can apply for cancellation of registration
If fax payer ceased to make taxable translations.
At any time after a period of three years of the date of his most recent
registration for VAT if registration person’s total transactions in the period of
12 months then the beginning reasonably are expected to be not more than
500,000 birr(Gebrie,2008 p,.209).
The cancellation of VAT registration takes effect
At the time registered person ceased to make taxable transaction. For example,
if one close down or sell his business. However if one has more than one
business and is not closing down or selling them all, he may not able to cancel.
It will depend on the level of taxable turn over of the accounting period during
which the person applies to the authority for cancellation of VAT
registration(Gebrie,2008p.209).
When registration for VAT is canceled, the authority is required to remove the
person’s name and all other detail from the VAT register and the person is
required to return back the issued certificate of registration. VAT registered can
not charge VAT or issue tax in voices for any supplies made and cannot claim are
fund of VAT in curried on any goods or services purchased from the date of the
registration is cancelled. (Misrak Testaye (MSc), 2011, p.346).
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2.11 Input VAT claim of the time of cancellation
If a registered person’s VAT registration is cancelled, his good (i.e, stock, supplies
and capital goods fixed asset) on hand at the time the cancellation takes effect
considered to be supplied (sold) at their costs in a taxable transaction taking place
at that time . This is true if the registered person claimed or had a right to claim an
input tax credit on such assets held on hand at the data of registration. The
abovementioned legal provision implies that when registration sold the goods on
hand at heir costs in a taxable transaction, the input VAT equals to the out put
VAT so that the net VAT payable or refundable with respect to such goods on
hand at the time the cancellation takes effect would be zero (Misrak, 2011,p.347).
In addition to the abovementioned legal provision, the VAT directive issued by the
ERCA on Nehassie 12,2001 E,C, also states that when registration is cancelled,
the deemed selling costs and in put tax to be claimed on capital assets on hand is
determined for each capital asset by raking into account the assets acquisition cost,
book value, total useful life, and remaining useful life (Misrak,2011,p.347).
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2.12 Advantage and Disadvantage of VAT
Advantage of VAT
ABRAHIM ABDULAH.lnk
Disadvantage of VAT
The following are some of the main disadvantage of VAT
1. It is regressive in nature
A straight forward single rate VAT with few exemptions would tax lower income
groups (the poor) more heavily than the higher income group (the rich). It is thus
in congruent with the basic principle of taxation which states that reason should be
taxed according to his ability to pay. This makes VAT regressive tax system (Dr.
Ramaswamiparameswaran 2005 p.291).
2. It requires advanced economic structure.
The proper implementation of VAT system requires organized and advanced
financial and economic structure as it complicated system VAT system also
requires proper record peeping of invoice at each stage of production and sale by
both seller and buyer hence, it becomes difficult to implement the system in all
types of economy (Misrak, 2011 p.312).
3. It is uneconomical
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VAT system involves high cost of administration, assessment verification,
collection, etc (Gebric,2008,p.380).
4. It put additional burden to tax authority
In VAT system, the manufactures, wholesalers and retailers have to fulfill various
legal formalities in the form of maintaining various recodes, accounts, books, etc.
the variation of those formalities put additional burden to the tax enforcing Authorities
(Misrak,2011,p.312).
CHAPTER THREE
3. Research Design and methodology
3.1 Research design
The study were focus on VAT collection problems of west Hararghe zone in land
Revenue Authority which is found in eastern Ethiopia, Oromia region. The study
were use Descriptive analysis to assess the present situation of VAT collection in
the area and identifying the major problem that affect VAT collection in zone.
3.2 Data source and collection method
The researcher was used different types of data collection on the study. The used
data collection methods vary according to the source data collection. The research
was used questionnaire to collection questions were prepared for the respondent
which take primary data in the questionnaire method of data collect as
Sample from the total employee under the study.
The question used has two formats that were opened and close end question. Both
questions were in such away that the objectives of study were easily accessed and
investigated in detail.
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3.3 Sample size and techniques
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CHAPTER FOUR
In this chapter the data collected using questionnaires presented to the employees of
WHZILRA concerning problem of VAT collection are presented and analyzed
employees have filled the questionnaires and properly returned, while three employees
did not. The data presentation involves tables.
This part presents data presentation and analysis that is gathered from questionnaires
distributed to the employees of WHZILRA, 27 employees have filled the questionnaires
and properly returned, while three employees did not. Problem of VAT faced by
WHZILR several problems which affect VAT collections are identified. These are
summarized as follows: first, there are organizations of private sectors which are running
business and registered for VAT. These are of course which have annual sales income of
birr 500,000 and above. So, the problem which can be mentioned as a big factor is in
identifying those organizations or private sectors that should pay VAT. This is due to the
fact that there is no willingness among the sellers to expose themselves of earning annual
income of the mentioned amount. On the other hand, it is raised that some sellers are not
18
issuing VAT invoice to the buyers that is under invoicing in which they provide only a
limited amount of VAT to the VAT payers. Some organizations are not declaring their
VAT on monthly basis or stop declaring totally (non-fillers) so, most of them are always
credit declaring rather than payment declaring.
In this part the data collected using questionnaires afford to the employees of WHZILRA
concerning problems of VAT collection are presented and analyzed 27 employees have
filled the questionnaires and properly returned, 3 employees did not.
Number %
1 Male 20 74%
2 Female 7 26%
Total 27 100%
Source: Primary data
Concerning to the above table-4.1, out of the total 27 respondents 20 (74%) were males
while the remaining 7(26%) were females. Most of the employees concerning to gender
is male.
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Table-4.2: Characteristics of the Responders Concerning to Age
No. Item Respondent
Number Percent
1 20-30 11 41%
2 31-40 11 41%
3 41-50 5 18%
4 >50 0 0%
Total 27 100%
Source: Primary data
As observed from the above table-4.2, among the total respondents 11(41%) of them age
is between 20-30 & 31-40 and 5(18%) between 41-50 and the re are no above 50.
Generally regarding gender of the respondents most of their age was found between 20-
30 & 31-40.
Table-4.3: Educational Level
As it is shown in the above table-4.3 concerning the educational status of the respondents
among the total respondents 2(7.41%) were 12 completed, also 2(7.41%) respondents
were in a certificate level, 12 (44.44%) were in a Diploma level and 11 (40.74%) were
degree holders. Hence, most of the employees in the organization were diploma holders.
Table-4.4: Marital Status
20
According to table4.4 in the above, concerning the marital status of the respondents
10(37%) were single while the remaining 17(63%) were married. Generally, as seen on
the above ; most of the employees of the organization were married.
In the Table-4.5 above, we can see the service year of the employees in the commission.
According to the response of the employees, 8(29.63%) were having a service between
11-15 years & above 15 years where as 4(14.81%) were 0-5 years and the other 7
(25.93%) were served for 6-10 years. From this, we can conclude that most of the
employees were served 11-15 and above 15 years.
21
with the income between birr2001-3000. And also 6 (22.22%) were between birr 1001-
1500, 10 (37.04%0 were birr 1501-2000, while with an income above birr 3000 was only
one employee. To conclude, most of the employee’s income level is found between birr
1501 and 2000.
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Accordingly, most of the respondents concerning factors which may affect Vat
declaration system the largest respondents answered that absence of awareness is the
main problem.
Table-4.9: Evaluation of the Present VAT Collection System
No. Item Respondent
Number %
1 Very good 1 3.70
2 Good 14 51.85
3 Fair 5 18.53
4 Bad 6 22.22
5 Very bad 1 3.70
Total 27 100%
Source: Primary data
Considering the above table 4.9 described the situation of the present VAT collection
system, 14 (51.85%) of the respondents replied as it is good, 6(22.22%) agreed as it is
bad, 5(18.53%) said that it is fair and only 1(3.70%) responded as it is very bad and other
1(3.70%) said very good. Hence, concerning the evaluation the present VAT collection
system, most of the respondents responded as the system is good.
23
1 yes 18 66.67%
2 No 9 33.33%
Total 27 100%
Source: Primary data
Considering the above table-4.11 described condition into account the result from the
questionnaire showed that there are business organizations that are categorized from
category A to B and C category. As to the respondents 18(66.67%) were answered that
the organization is while 9(33.33%) are not categorized in the business organization.
So, we can conclude from this almost as respondent business organization recategorized
from category A to category B and C.
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No. Item Respondent
Number %
1 Very high 0 0%
2 High 5 18.52%
3 Medium 12 44.44%
4 Low 10 37.04%
Total 27 100%
Source: Primary data
According to the above table 4.13, the employee of VAT department of WHZIRA are
asked to evaluate the extent of willingness to pay the VAT liability in a given period of
payment among the tax payers 18.52% of the respondents believed that there is high
willingness among tax payers while 44.44% of the respondents were average willingness
and 37.04 responded that there is low willingness among the tax payers.
Generally, as observed from the table 4.8, according to willingness of tax payer, medium
is the largest.
Table-4.14: Measures that have been taken to correct VAT problem
No. Item Respondent
Number %
1 By warning VAT payers 8 29.63%
2 By license from VAT payer 7 25.93%
3 Fine punishment 8 27.63%
4 imprisonment 4 14.81%
Total 27 100%
Source: Primary data
According to the above table 4.14, described measures have been taken by WHZILRA to
correct the problem raised. According to the response from the employee the
questionnaire by warning VAT payers and fine punishment is 8(29.63%), 7(25.65%) by
license from VAT payers. While 4(14.8%) were response by imprisonment. Generally
according to table 4.9 by warning VAT payers and fine punishment are the largest
concerning measures taken to correct VAT problem.
25
1 Very high 3 11.11%
2 High 6 22.22%
3 Medium 7 25.93%
4 Low 11 40.74%
Very low 0 0%
Total 27 100%
Source: Primary data
The employee of the VAT section of WHZILRA are asked whether the department are
cooperating in preventing VAT evasion and avoidance among the tax payers. Concerning
the above table shows that 11.11% of the respondent think that the organization are very
high involved in cooperating prevention of VAT evasion and avoidance, 22.22% (6) of
the respondent thinking that it is high, while 7(25.93%) shows as it is medium
cooperative, and 40.74%(11) mentioned that trey are low cooperative. As observed from
the above table 4.10 most of the respondent give response to questionnaire as the
prevention of VAT evasion and avoidances is low.
So, as to compare the previous sales tax with value added tax (VAT), collector have been
asked to show their advantage over the others 18(67%) of the respondent have answered
26
that they preference of VAT to sales tax, while 9(33%) is not. Generally, as seen the
above table 4.11 preference of VAT is the largest, while sales tax is smallest.
Table-4.17: Adequacy of time given for payment of VAT liability
No. Item Respondent
Number %
1 More adequate 2 7.41%
2 Adequate 23 85.18%
3 Less adequate 0 0
4 In adequate 2 7.41%
Total 27 100%
Source: Primary data
According to the table 4.12, the tax collector are asked relation to the adequacy of the
time for payment of VAT liability, as respondent for questionnaire 2(7.41%) is more
adequate and inadequate,23(85.18%) is the time for payment of VAT liability is
adequate, while less adequate is not responder. Totally as it is observed from table 4.12
adequate is the largest among alternative given concerning the time given for payment of
VAT liability.
According to respondent, the major VAT collection problem in WHZLRA is the absence
of VAT payers,, unauthorized VAT payer, absence of Tax invoice, lack of awareness.
27
CHAPTER FIVE
5. SUMMARY AND CONCLUSION AND RECOMMENDATION
5.1 Summary and Conclusion
VAT is a transaction tax collected on goods and services of all stage of production and
distribution. This tax is collected on value added at each stage. VAT was introduced in
Ethiopia in 2002 under proclamation number 285/2002 in replacements of sales tax. West
Harorgle zone in land Revenue Authority is Authorized to administer this tax. VAT
payers are person who are registered for VAT and company on taxable activity. The total
value of transaction birr 500,000 obliged to pay VAT.VAT is levied and paid at the rate
of 15% of the value it every taxable transaction by a registered person and every import
of good other than exempt import and import of services Analysis were made in the
preceding section of this study on the basis of this analysis, this I have concluded the
following.
28
Most of the business organization or businessman recategorized from category A
to B and C, because of losing customer due to expensive good and services,
required legal knowledge.
Major VAT collection problems are exist such as of absence of VAT payers, an
authorized VAT payers, absence of VAT invoice, lack of awareness.
Most of the respondent give response to questionnaire as prevention of VAT
evasion and avoidance is low
Most of the employees the organization said that prevention of VAT evasion and
avoidance is low. Because of these business enterprise and individual business
person evading VAT due to the fact that there is weakness enforcement
performance.
Concerning measures taken for improving collection of VAT, by warning VAT
payers and fine punishment is the largest.
Generally, as seen the preference of VAT was the largest, while sales tax is
smallest.
5.3 Recommendation
As to the study conducted, the are certain problems related to collection of VAT.
Therefore, to minimize these problem I have forworded the following recommendation.
29
The government gives more attention to both employees of the organization and
tax payers in order to control their activities about revenue from tax or in order
to minimize evasion and avoidance.
WHZILRA should have to take measures to protect VAT collection problem by
prioritized step by step, means by warning VAT payers, take their license from
VAT payer, fine punishment and then imprisonment.
REFERENCE
Bahita H.L, 1998,public Sinance. Vikas publkhing 19th ed .1998 Ramas wami
parames waran (Dr), 2005
Tanzivito and Howell Zee, 2001, Tax policy for developing
countries. IMF.WWW. .IMF.Org.
Purhot,Mahesh 2000, value added Tax: the need of the new
millennium. WWW.start.Com.
Gebrie worku, 2008
30
APPENDIX
JIMMA UNIVERSITY
College of business and Economics
Department of Accounting
Dear respondent, this questionnaire is required as accountry for B.A degree to gather
relevant data for the research be conducted on the title VAT collection problems on west
Hararghe zone in land Revenue Authority. The relevant data you truly response for each
item will determine the quality of the research. Therefore you are kindly requested
answer all the items included in the questionnaire please read the following and thick
mark “√” in the box
Thank you in advance for your cooperation
Note: don’t afraid it is legal reservation
1. Gender status ot the employee Male Female
31
2. Age 20- 30 31-40 41- 50 >51
3. Marital status single married
4. Educational level
12 completes certificated Diploma Degree
6. In come level (salary)
500 – 700 1501 – 2000
701 – 1000 2001 – 3000
1001 – 1500 above 3000
7. Did you face any problem related to VAT declaration statement given to you by tax
payers ? Yes No
8. If your answer for question number 7 yes, what are the
problem?
A/ absence of awareness to VAT payer
B/ making false statement
C/ Absence of correct tax invoice
D/ others
Specify _____________________________________________
______________________________________________________________
_________________________________________________________________
9. How did you evaluate the present VAT collection system concerning
VAT payer ? A/ very good B/ good C/ fair
D/ bad E/ very bad
10. Do you think the number of employee of the VAT department sufficient to help
collection of VAT? A. Yes B. No
11. Did you think there were business organization which have been
recategorzed to some other category after VAT registration ?
A. Yes B. No
12. If your answer for question number 11 is yes, what the
reason for shifting from Vat to other category ?
A/ required legal knowledge concerning Vat
B/ losing customers due to expensive goods and services
32
C/ taking refund by installment tends to weaken their
investment powere
D/ becoming bankrupt
E/ others please, specify ________________________
____________________________________________________
11. How you evaluate willingness of tax payers to pay their VAT
liability on time ? A/ Very high B/ high
C/ Medium D/ Low
12. if your ansuer for question number 13 is low what measures have
you taken to correct the problem ?
A/ by warning VAT payer B/ By license from VAT payers
C/ fine punishment D/ imprisonment
E/ others, specify _______________________________________
_________________________________________________________________
13. How do you evaluate the cooperation among employees of VAT department
protect tax evasion and avoidance?
A/ Very high B/ High C/ medium
D/ low E/ very low
16. Is VAT ad vantages than the replaced sales tax ?
A/ Yes B/ No
17. As tax administration, how do you evaluate the time give for
payment of VAT liability?
A/ more adequate B/ Adequate
C/ less adequate D/ inadequate
18. In your view, what are the major VAT collection problems you have
faced? Please specify ______________________________________
__________________________________________________________________
_________________________________________________________________
19. What are the possible remedies to over come such problem?
Please specify _____________________________________________
________________________________________________________
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________________________________________________________
Thank you.
34