Value Added Tax (VAT) as one of the important sources of government revenue, its implementation in Ethiopia is at its infant stage. This study tried to explore the major problems and prospects of VAT implementation in Tigrai Regional State. The results of the study indicated that the willful registration of the businesses has not yet come to the desired level, there is negative perception about the fairness of the payment across the businesses, significant decline in the number of the customers following the implementation of VAT has been observed and many consumers believe that VAT has been the very reason for business firms to impose higher price on products or services delivered. Download
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