| Abstract: | Taxes can be classified as direct and indirect taxes. Direct taxes are taxes that are directly related to the taxpayers; whereas indirect taxes are taxes paid by an individual through the purchase of goods and services. VAT is one of the indirect taxes levied on consumption where the value of goods and services increases as they charge hands in course of production, distribution and final sales to the consumer. The objective of the study is to assess practice and challenges of value added tax administration in category “a” tax payers the case study of Addis Ababa city administration revenue bureau. The study used both qualitative and quantitative research methods to collect and analyze both primary and secondary data. In the branch office there were 380 total workers out of this 250 of them were workers who are directly or indirectly involved in VAT collection and administrating department,. The study used Judgmental sampling technique to select representative sampling from the 250 workers. Accordingly, the total sample size considered by the researcher was 67. In regarding with tax payer sampling technique used convenience, from the total of 833 tax payer the researcher selected 225 samples. The information gathered from employee's attitude towards VAT administration problems, efficiency and effectiveness. Questionnaires were distributed for sixty seven employees of the branch office .where, two hundred twenty five questioner were distributed to tax payer to gather the information about tax payer attitude, awareness of VAT, VAT administration problem, efficiency and effectiveness to analyze the data descriptive data analysis technique and statistical package for social science (SPSS) software version IBM SPSS statistics 23 Licensee was used. |
