A Study on the Challenges and Prospects of Value Added Tax Administration in the Krachi East Municipality

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.