A Research Report Submitted to Mzumbe University – Mbeya Campus College in Part of Partial Fulfilment for the Award of Bachelor Degree of Accountancy and Finance in Business Sector (BAF-BS) of Mzumbe University
The title of this study is Impact of EFD on VAT collection process a case of Mbeya city. Main objective of the study was to examine the impact of EFD on VAT collection process with some specific objective of the study were to explore on impact of EFD on VAT collection, to determine the impact of EFD on VAT returns submissions and lastly to assess the challenges facing traders when using this device. total number of populations were 105 respondents and sample size were 51 respondents with the help of Yamane formula (1967) who categorized as follows; 36 are traders,15 are normal staffs from TRA. Both convenience and purposive sampling technique were used to collect data, also interview and Questionnaire methods are used to collect data from respondents. Finally, data were collected and analyzed, where quantitative data are analyzed with the help of statistical package for social science and qualitative data were codding. And result was obtained, VAT collection were increased soon after introduction of EFD whereby before the introduction of EFD machines VAT collected were 654,324.7 million per year but soon after the introduction of EFD machinesVAT collected were 670,430.6 Million per year. This figure is keeping on raising month after month since as days goes on people are encouraging to have these devices. In case of VAT submission also increased due to the presence of these devices and lastly though there are plenty of significance of using EFD but still traders do face some challenges like cost of buying is very high , also low education Is been given to them, and in case of breakdown suppliers delay to fix up. Therefore, the study also recommends that TRA should lower the price of machines so as to encourage people to buy large number of EFD machines also TRA should provide incentive to those having machine like relief in taxation since EFD has a big impact on VAT collection