Abstract:
The study was conducted to investigate the determinant factors of Value Added Tax collection
performance in north shoa Zone. The researchers used cross-sectional data covering a period in
2020. Since the data was survey in nature the researcher used both qualitative and quantitative
(Mixed) research approaches to achieve objective of the study. The researchers used purposive
and stratified sampling method to take a sample of Tax payers and Revenues Authority
Employees. Descriptive statistics and multiple regressions were used to analyze primary and
secondary data to reach the result of the study using Statistical Package for Social Science
(SPSS) version 20. The result of the study show that Tax payers awareness on Value added Tax,
Tax payers‘ maintenance of account and Value added Tax Rate have positively influenced
Value added Tax collection performance where as Tax Evasion, Tax avoidance and Tax non compliance variables have negatively affected Value added Tax collection performance for tax
payers. The study results also showed, Value added Tax Audit, Competence training, adequate
manpower, Tax payers identification and Penalization variables have positively influenced Value
added Tax collection performance. Thus, it‘s recommended that Revenues Authority should
fulfill necessary manpower and create continuous follow up in order to improve Value added
Tax collection performance.
