A Thesis/Disertation Submitted in Fulfilment of the Requirement for Award of
Masters of Science in Accounting and Finance (MSc A&F) at Mzumbe
University
The study will subjective was to assess the Value Added Tax (VAT) Compliance of
market intermediaries. The quantitative approach was employed using a sample of
eighty (90) population of TRA, Accademic Institutions, NGO’s and VAT
compliance from Dar es salaam where by both prospective corespondents of the
study gave our questionnaires to fill in. The study’s instruments deployed included
questionnaires and secondary data from different sources. The data collected have
been, compiled, presented and analyzed. The data collected from the field were
analyzed using SPSS.
This study is based only to VAT complience of Market intermediaries dealing with
soft drinks, a case study of Coca-Cola Kwanza Distributersparticularly in dar es
salaam. This study helped to shw how TRA fail in Tax collections and to find out
the reasons influences this group to envade VAT. The anticipation outcome of this
study is the identification of the reasons influence VAT Compliance of market
intermediaries to envade VAT Tax and the better solution of this promlem. This
findings information will likely impact the design of future VAT policies and
improvement of the VAT Act. The main objective was to find out how or to
determine the reasons of VAT registered Compliance of market intermediaries in
Tanzania not paying VAT particularly in Dar es Salaam to the achievement of VAT
main objectives, case study of Coca-Cola Kwanza Agents. The findings showed that,
TRA does not collect Tax to the bigger numbe of people not only Marketing
Intermediaries of soft drinks. Also many businessmen they don’t pay VAT because
of the returned services given out by the govrnment to improve their business and
their environment. The study recommendations were based on two sides.
Recommendations regards what TRA should do to improve their performance
include; effectiveness operations, proper records management, capacity building,
strong established policies, good governance and accountability. On the other hand
some of the recommendations were drawn on procedures and policies that TRA need
to establish so as to minimize if not to eliminate people who doesn’t want to pay
VAT, they include close monitoring, develop and make available different guidelines
manuals, develop appropriate Tax collection mechanism.