A Dissertation Submitted in Partial Fulfilment of the Requirements for Award of
the Degree of Master of Business Administration (MBA) in Corporate
Management of Mzumbe University
The Tanzania Revenue Authority was until 2010 using Electronic Cash Registers (ECR)
and manual paper system in processing Value Added Tax collections. Those tax
collection methods were prone to falsification and they did not have a fiscal memory
which could record and store tax information resulted to huge loss of Value Added Tax
revenues. The Authority therefore introduced the use of Electronic Fiscal Devices which
are more technological advanced than the ordinary Electronic Cash Registers and
manual system. Electronic Fiscal Devices project requires Value Added Tax registered
traders to make proper use of the devices as the machines are expected to simplify and
improve the efficiency of Value Added tax collection process and hence they may
increase government Revenues. The objective of Electronic Fiscal Devices project was
to tighten the grip on tax collection as Tanzania Revenue Authority was losing a lot of
revenue through falsification and other malpractices. This study therefore has measured
the impact on performance of Value Added Tax collection process caused by the
implementation of the Electronic Fiscal Devices project.
The study was conducted in Tanzania Revenue Authority in Tanga city. Secondary data
were collected from Monthly Value Added Tax collection reports and Electronic Fiscal
Devices Monitoring System (EFDMS)three years before and after the introduction of
Electronic Fiscal Devices. The data were analyzed using Statistical Package for Social
Science and Excel.
The findings of the study indicated that Electronic Fiscal Devices have significant
impact on VAT collection and Value Added Tax returns submission and also they have
positive effect on Value Added Tax collections. Hence it was concluded that Electronic
Fiscal Devices are useful in Performance of Value Added Tax collection process. The
study recommended that Government should continue investing on Electronic Fiscal
devices for Value Added Tax collection process.