Effectiveness of Electronic Fiscal Device on Value Added Tax Compliance in Tanzania:

Abstract

This study aims to assess the effectiveness of Electronic Fiscal Device (EFDs) on Value Added Tax (VAT) compliance in Tanzania. The sample category included 92 VAT-registered traders, 4 operational staff selected through purposive sampling, 1 ARM for audit, 1 ARM for debt management and compliance monitoring. The study used cross section study research designs, and both qualitative and quantitative research methods are included in the study's methodology. Closed-ended questionnaires. The majority of respondents express positive views, particularly in terms of the filing process, error reduction, and the perceived value of EFDs in ensuring timely and efficient transactions. These positive sentiments align with prior research that has highlighted the potential benefits of EFDs in improving tax-related processes, emphasizing enhanced efficiency, reduced errors, and increased transparency. However, the study also reveals dissenting opinions and neutral responses, indicating the existence of specific concerns and uncertainties among stakeholders. This highlights the necessity for targeted interventions and communication strategies to address these nuanced perspectives. The nuanced findings underscore the importance of ongoing evaluation, targeted communication strategies, and responsive policy adjustments to address concerns and enhance stakeholders' understanding, ultimately ensuring the continued effectiveness and support for EFD implementation in Arusha City. Regularly review the EFD implementation policy, considering feedback from stakeholders. Be open to making necessary adjustments to address concerns and improve overall effectiveness