Abstract:
The study sought to investigate the challenges and prospects of VAT administration
in the Krachi East Municipality of the Oti Region of Ghana. In this study, the
researcher employed the descriptive research design and the quantitative approach
to enquiry. The target population of the study comprised all VAT registered persons
and businesses as well as VAT administrators operating in the Krachi East
Municipal. A final sample consisting of 93 VAT registered persons and businesses
and 6 VAT administrators were selected for the study. Primary data was collected
through administration of structured and semi-structured questionnaires. The data
collected was analyzed using SPSS Version 26.0 and presented in the form of
frequency tables and charts. The study revealed that there is poor record-keeping
among some VAT registered persons and businesses in the Krachi East
Municipality. It further revealed that there is infrequent interaction between
taxpayers and the VAT administrators in the municipality. The study also found
that there are inadequate logistics for VAT administrators in the Krachi East
Municipality to carry out their operations. The study recommends the
intensification of VAT education to taxpayers within the municipality, regular
training of staff and provision of adequate logistics as well as effective monitoring
and control.
