Effect of Real Time of Tax Information on Value Added Tax Compliance among Medium Enterprises in Westlands Region- Parklands, Nairobi County, Kenya
DOI:
https://doi.org/10.70619/vol6iss3pp44-55-801Keywords:
Real Time of Tax Information, Value Added Tax Compliance, Medium EnterprisesAbstract
The powerful influence of the digital age on daily life and human activities has created a state of "digital disruption". It means that the digital age inevitably changes the way the economy works, disrupting traditional business models. This, of course, requires adaptation to changes that are not always easy and painless but inevitably happen, whether we are dealing with agriculture, manufacturing, trade, banking, or service delivery. Therefore, this study aimed to examine the effect of real-time tax information on value-added tax compliance among medium enterprises in the Westlands Region- Parklands, Nairobi County, Kenya. The theory that guided the study was the Ability to Pay theory and the Technology Acceptance Model (TAM). The study used an explanatory research design. The target population comprised 241 Medium Enterprises Parklands in the Westlands region, Nairobi County, with a sample size of 151 respondents. The study achieved a high response rate of 86.1%, as 130 respondents correctly completed and submitted their questionnaires. Primary data was collected using closed-ended questionnaires. The statistics generated were descriptive and inferential, presented in tables and charts. The regression model found that Real-time tax information has a positive and significant influence on VAT compliance (β = 0.778, p = 0.000). The study recommends that the government invest in modernizing tax administration systems to ensure seamless and timely dissemination of tax-related updates. Policymakers should mandate the Kenya Revenue Authority (KRA) to implement real-time reporting platforms that provide taxpayers with instant access to regulatory changes, filing deadlines, and compliance requirements. Future research could explore the effects of deterrent measures on VAT compliance.
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