The Impact of Electronic Tax Register Machines on VAT Compliance in Ethiopia, the case of Bahir Dar city

摘要

In Ethiopia, ETRs machines use has become mandatory, following the reforms made on VAT administration. This study aims at understanding the impact of ETRs machines on VAT compliance among VAT registered taxpayers empirically, in Amhara National Regional State, taking the case of the city of Bahir Dar. The study used a sample of 176 VAT registered taxpayers and thus uses ETRs machines in the study area. Simple random sampling technique was used to draw the samples from the total target population. Primary data were collected with the help of Likert type items, each with a 5-point scale, running from “Strongly agree” to “Strongly disagree” from respondents. The collected data have been analyzed with the help of SPSS version 21. The Multiple Logistic Regression analysis was employed to predict the likely impact of using ETRs machines on VAT compliance in the target population. The results from the Multiple Logistic Regression analysis show that use of ETRs machines among VAT registered taxpayers is correlated with high levels of tax compliance attitude in the target population. The logistic regression analysis further confirms that the independent variables of the study have their own role in explaining the level of VAT compliance among the target population. As such, the tax morale of the taxpayers, the fines and penalties of the tax laws, and the probability of audit have positive and significant impact on understanding VAT compliance level among the VAT registered taxpayers in the study area.