4,929
Views
0
CrossRef citations to date
0
Altmetric
ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS

Value Added Tax compliance, and Small and Medium Enterprises (SMEs): Analysis of influential factors in Nigeria

& ORCID Icon
Article: 2228553 | Received 16 Mar 2023, Accepted 19 Jun 2023, Published online: 29 Jun 2023

References

  • Abdul Wahab, N. S., Ntim, C. G., Tye, W. L., & Shakil, M. H. (2022). Book-tax differences and risk: Does shareholder activism matter? Journal of International Accounting, Auditing & Taxation, 48, 100484. https://doi.org/10.1016/j.intaccaudtax.2022.100484
  • Adegbie, F. F., Enerson, J., & Olaoye, S. A. (2022). An empirical investigation into the relationship between electronic tax management system and tax revenue collection efficiency in selected states in South West, Nigeria. Archives of Business Research, 10(4), 93–25. https://doi.org/10.14738/abr.104.12195
  • Adegbite, T. A., & Araoye, F. E. (2020). Value Added Tax (VAT) revenue and imported goods: Nigeria experience. 6(3), 22–29.
  • Adegbite, T. A., & Shittu, S. A. (2017a). The analysis of the impact of corporate income tax on investment in Nigeria. World Wide Journal of Multidisciplinary Research Development, 3(3), 60–64.
  • Adegbite, T. A., & Shittu, S. A. (2017b). The impact of value added tax on private investment in Nigeria. Account and Financial Management Journal, 2(4), 644–651. https://doi.org/10.18535/afmj/v2i4.03
  • Adeniji, A. A., & Olowookere, A. E. (2018). Value-Added Tax (VAT) Compliance by Small and Medium enterprises (SMEs) in Nigeria: A review of the challenges and prospects. International Journal of Economics, Commerce and Management, 6(12), 88–105.
  • Adeyemo, K. A., & Oyedele, A. O. (2018). Value-added tax compliance and small and medium enterprises performance in Nigeria. Research Journal of Finance & Accounting, 9(6), 184–193. https://doi.org/10.15640/ijat.v6n2a4
  • Agbo, E. I., & Nwadialor, E. O. (2020). The genesis and development of value added tax administration: Case study of Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(2), 15–30. https://doi.org/10.6007/IJARAFMS/v10-i2/7266
  • Akanbi, T. A., & Adegbite, T. A. (2016). Analysis of the effect of financing on profitability of Small and Medium Enterprises (SMES) in Nigeria: Lagos State outlook. International Journal of Marketing and Technology, 6(8), 1–13.
  • Akinlabi, B. H., & Oyedele, O. P. (2019). Value-added tax compliance by small and medium enterprises in Nigeria: A study of selected firms in Lagos state. African Journal of Accounting, Auditing and Finance, 8(1), 1–16.
  • Akumbo, S., Mbilla, E., Abiire, M. A., Atindaana, P. A., Ayimpoya, R. N., & Polytechnic, B. (2020). Tax Education and Tax Compliance in Ghana. 8(1), 1–22.
  • Alabede, J. O., Zainal Affrin, Z., & Idris, K. M. (2011). Individual taxpayers’ attitude and compliance behaviour in Nigeria: The moderating role of financial condition and risk preference. Journal of Accounting and Taxation, 3(1), 91–104. https://doi.org/10.22164/isea.v5i1.54
  • Aladejebi, O., & Oladimeji, J. A. (2019). The impact of record keeping on the performance of selected small and medium enterprises in Lagos metropolis. Journal of Small Business and Entrepreneurship Development, 7(1), 28–40. https://doi.org/10.15640/jsbed.v7n1a3
  • Alkausar, B., Nugroho, Y., Qomariyah, A., & Prasetyo, A. (2023). Corporate tax aggressiveness: Evidence unresolved agency problem captured by theory agency type 3. Cogent Business & Management, 10(2), 2218685. https://doi.org/10.1080/23311975.2023.2218685
  • Alm, J., Kirkchler, E., Muehlbacher, S., Gangl, K., Hofmann, E., & Kogler, C. (2012). Rethinking the research paradigms for analysing tax compliance behaviour. CESifo Forum, ISSN 2190-717X, ifo Institut – Leibniz Institutfür Wirtschaftsforschung an der Universität München, München, 13(2), 33–40. http://hdl.handle.net/10419/166479
  • Alognon, A. D., Koumpias, A. M., & Martinez-Vazquez, J. (2020). The impact of plastic money use on VAT compliance: Evidence from EU countries. https://scholarworks.gsu.edu/icepp/132.
  • Al-Rahamneh, N. M., Al Zobi, M. K., & Bidin, Z. (2023). The influence of tax transparency on sales tax evasion among Jordanian SMEs: The moderating role of moral obligation. Cogent Business & Management, 10(2), 2220478. https://doi.org/10.1080/23311975.2023.2220478
  • Alshira’h, A. F., & Abdul-Jabbar, H. (2019). The Effect of Tax Fairness on Sales Tax Compliance among Jordanian Manufacturing SMEs. Academy of Accounting & Financial Studies Journal, 23(2), 364–375.
  • Alsughayer, S. A. (2021). VAT compliance challenges among SMEs: Evidence from Saudi Arabia. Journal of Accounting, Finance & Auditing Studies, 7(3), 34–59. https://doi.org/10.32602/jafas.2021.018
  • Amanamah, R. B. (2016). Tax compliance among small and medium scale enterprises in Kumasi Metropolis, Ghana. Journal of Economics & Sustainable Development, 7(16), 5–16. https://core.ac.uk/download/pdf/234647611.pdf
  • Bentham, J., Burns, J. H., Hart, H. L. A. (1789). An introduction to the principles of morals and legislation. Econlib Book. https://doi.org/10.1093/oseo/instance.00077240
  • Benzarti, Y., & Dorian, C. (2019). Who really benefits from consumption tax cuts? Evidence from a Large VAT reform in France. American Economic Journal: Economic Policy, 11(1), 38–63. https://doi.org/10.1257/pol.20170504
  • Chartered Institute of Taxation of Nigeria (CITN) Report. (2022). https://portal.citn.org/administration-of-value-added-tax-in-nigeria-goods-and-servicesexempt.
  • Chelliah, S., Pandian, S., Sulaiman, M., & Munusamy, J. (2010). The moderating effect of firm size: Internationalization of small and medium enterprises (SMEs) in the manufacturing sector. African Journal of Business Management, 5(July 2014). https://doi.org/10.5539/ijbm.v5n6p27
  • Csabay, M., & Stehlikova, B. (2020). Firm size distribution and the effects of ownership type. Journal of Competitiveness, 12(4), 22–38. https://doi.org/10.7441/joc.2020.04.02
  • Dabić, M., Lažnjak, J., Smallbone, D., & Švarc, J. (2019). Intellectual capital, organisational climate, innovation culture, and SME performance: Evidence from Croatia. Journal of Small Business and Enterprise Development, 3(5), 189–201. https://doi.org/10.1108/JSBED-04-2018-01173
  • De Neve, J.-E., Imbert, C., Spinnewijn, J., Tsankova, T., & Luts, M. (2019). How to improve tax compliance? Evidence from population-wide experiments in Belgium. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3389405
  • Doğan, M. (2013). Does firm size affect the firm profitability? Evidence from Turkey. Research Journal of Finance & Accounting, 4(4), 53–60.
  • Emmanuel, G., Williams, A. A., Ivy, E., Akwetey, H. M., Lexis, A. T., & Paul, K. A. (2023). An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology. Cogent Business & Management, 10(1), 2183559. https://doi.org/10.1080/23311975.2023.2183559
  • Eniola, A. A., & Ektebang, H. (2014). SME firms performance in Nigeria: Competitive advantage and its impact. International Journal of Research Studies in Management, 3(2), 75–86. https://doi.org/10.5861/ijrsm.2014.854
  • Eragbhe, E., & Aronmwan, E. J. (2015). Taxpayers Income, Tax Payers Attributes and Personal Income Tax Compliance. African Journal of Management Sciences, 4(5), 95–111.
  • Eragbhe, E., & Omoye, A. S. (2014). SME characteristics and value added tax compliance costs in Nigeria. Mediterranean Journal of Social Sciences, 5(20), 614–620. https://doi.org/10.5901/mjss.2014.v5n20p614
  • Fagbemi, T. O., & Abogun, A. (2015). Factors influencing voluntary tax compliance of small and medium scale enterprises in Kwara state, Nigeria. Entrepreneurial Journal of Management Sciences, 3(1), 62–77. http://hdl.handle.net/123456789/3988
  • Fauziati, P., & Kassim, A. A. M. (2018). The effect of business characteristics on tax compliance costs. Advanced Science Letters, 24(6), 353–358. Microsoft Word - msl_2018_26.docx (growingscience.com). https://doi.org/10.1166/asl.2018.11608
  • Finance Bill. (2022). House of Representatives Committee on Finance National Assembly complex, Abuja, Nigeria.An Invitation to One Day Public Hearing and Submission of Memoranda on the 2022 Finance Bill .
  • Fredrick, W. W., & Peter, O. I. (2019). The influence of demographic factors on tax payercompliance in Uganda. The International Journal of Academic Research in Business & Social Sciences, 9(9), 537–557. https://doi.org/10.6007/IJARBSS/v9-i9/6328
  • Ghasia, B. A., Wamukoya, J., & Otike, J. (2017). Managing business records in small and medium enterprises at Vigaeni ward in Mtwara-Mikindani municipality, Tanzania. International Journal of Management Research and Reviews, 7(10), 974–986. https://www.proquest.com/openview/fe167c038479603fea7eed382c876002/1?pq-origsite=gscholar&cbl=2028922
  • Gherghina, Ș. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(1), 347.
  • Gilligan, G., & Richardson, G. (2005). Perception of tax fairness and tax compliance in Australia and Hong Kong-A preliminary study. Journal of Financial Crime, 12(4), 331–342. https://doi.org/10.1108/13590790510624783
  • Gyamera, E., Atuilik, W. A., Eklemet, I., Adu-Twumwaah, D., Issah, A. B., Tetteh, L. A., & Gagakuma, L. (2023). Examining the effect of financial accounting services on the financial performance of SME: The function of information technology as a moderator. Cogent Business & Management, 10(2), 2207880. https://doi.org/10.1080/23311975.2023.2207880
  • Habes, M. (2019). The influence of personal motivation on using social TV: A uses and gratifications approach. International Journal of Information Technology and Language Studies, 3(1), 32–39. http://journals.sfu.ca/ijitl
  • Halim, H. A., Ahmad, N. H., & Ramayah, T. (2019). Sustaining the innovation culture in SMEs: The importance of organisational culture, organisational learning and market orientation. Asian Journal of Business Research, 9(2), 14–26. https://doi.org/10.14707/ajbr.190059
  • Hofmann, E., Voracek, M., Bock, C., & Kirchler, E. (2017). Tax compliance across sociodemographic categories: Meta-analyses of survey studies in 111 countries. Journal of Economic Psychology, 62, 63–71. https://doi.org/10.1016/j.joep.2017.06.005
  • Holcombe, R. G. (2010). The value added tax: Too costly for the United States. Mercatus Center at George Mason University Journal, 16. https://wwwmercatus.org/system/files/VAT.Holcombe.pdf
  • Inim, V. E., Udoh, F. S., & Ede, U. S. (2020). Taxation and the Growth of Small and Medium Enterprises in Nigeria. Asian Journal of Social Sciences and Management Studies, 7(3), 229–235. https://doi.org/10.20448/journal.500.2020.73.229.235
  • Institute of Chartered Accountants of Nigeria (ICAN). (2022). Technical Bulleting on Entrepreneurship & SMEs-Bookkeeping, Taxation & Relevant Laws. Research and Technical Department, 4(1), 1–5.
  • Jensen, S. (2018). Policy implications of the UAE’s economic diversification strategy: Prioritising national objectives. Economic Diversification in the Gulf Region, 2, 67–88. https://doi.org/10.1007/978-981-10-5786-1_4
  • King’oina, J. O. (2016). Factors influencing value added tax compliance among the construction firms in Kisumu County, Kenya, Unpublished project submitted in partial fulfilment of the requirements of award of the degree of master of business administration (finance option) of the school of business. of the University of Nairobi.
  • Kirti, D., Parsa, H. G., Rahul, A. P., & Milos, B. (2014). Change in consumer patronage and willingness to pay at different levels of service attributes in restaurants: A study in India. Journal of Quality Assurance in Hospitality & Tourism, 15(2), 149–174. https://doi.org/10.1080/1528008X.2014.889533
  • Lim, D. S., Morse, E. A., & Yu, N. (2020). The Impact of the global crisis on the growth of SMEs: A resource system perspective. International Small Business Journal, 38(6), 492–503. https://doi.org/10.1177/0266242620950159
  • Loureiro, J. (2016). The role of identifiability, geographical distance and social norms on tax compliance: An experimental study. In Universidade do Porto (Issue September).
  • Marandu, E. E., Mbekomize, C. J., & Ifezue, A. N. (2015). Determinants of tax compliance: A review of factors and conceptualizations. International Journal of Economics and Finance, 7(9). https://doi.org/10.5539/ijef.v7n9p207
  • Mohammed, N., Hijattulah, A., & Idawati, I. (2017). VAT Compliance and the Influence of Political and Business Environment: A Proposed Framework for Nigerian SMEs. Asian Journal of Business Management Studies, 8(2), 13–20.
  • Msangi, S. Y. (2015). Evaluation and Analysis of Value Added Tax (VAT) compliance: A Case Study of Small and Medium Enterprises in Tanzania. M.Sc. Thesis, University of Southampton.
  • Msangi, S. Y. (2015). Evaluation and Analysis of Value Added Tax (VAT) compliance: A Case Study of Small and Medium Enterprises in Tanzania. MSc. University of Southampton.
  • Muda, S., & Rahman, M. (2016). Human capital in SMEs life cycle perspective. Procedia Economics and Finance, 35(6), 683–689. https://doi.org/10.1016/S2212-5671(16)00084-8
  • Mu, R., Fentaw, N. M., & Zhang, L. (2022). The impacts of value-added tax audit on tax revenue performance: The mediating role of electronics tax system, evidence from the Amhara Region, Ethiopia. Sustainability, 14(10), 6105. https://doi.org/10.3390/su14106105
  • Muhammed, M. T. (2022). A study on listed companies’compliance with value-added tax: The evolving role of compliance officer in Oman. Public Administration and Policy, 25(1), 89–98. https://doi.org/10.1108/PAP-02-2021-0017
  • Naicker, Y., & Rajaram, R. (2018). Factors that Influence Tax Compliance of SMEs in South Africa. Acta Universitatis Danubius, 10(2), 94–111
  • Naomi, M. M. (2022). Factors Affecting Value Added Tax Compliance in Kenya. A Case Study of North of Nairobi ( Doctoral dissertation, KESRA/JKUAT-Unpublished research project).
  • Nawang, K., Muhamad, T., Lia, U., & Dadan, R. (2023). CEO narcissism, corporate governance, financial distress, and company size on corporate tax avoidance. Cogent Business & Management, 10(1), 2167550. https://doi.org/10.1080/23311975.2023.2167550
  • Nguyen, P. T. H., & Trinh, T. N. (2022). Factors affecting value added tax compliance behavior of enterprise: A study of the tax office of Binh Tan District, Ho Chi Minh City. The University of Danang - Journal of Science and Technology, 20(6.1), 85–89.
  • Nichita, A., Batrancea, L., Pop, C. M., Batrancea, L., Morar, I. D., Masca, E., Roux-Cesar, A. M., Forte, D., Formigoni, H., & Silva, A. A. (2019). We Learn Not for School but for Life: Empirical Evidence of the Impact of Tax Literacy on Tax Compliance. Eastern European Economics. https://doi.org/10.1080/00128775.2019.1621183
  • Nura, M., Abdul Jabbar, H., & Ibrahim, I. (2017). VAT compliance and the influence of political and business environment: A proposed framework for Nigerian SMEs. Asian Journal of Business Management Studies (AJBMS), 8(2), 13–20. https://repo.uum.edu.my/id/eprint/26342
  • Nwosu, C. P., & Ochu, E. R. (2017). Small and medium enterprise financing in Nigeria: Benefits, challenges and way forward. Journal of Economics & Sustainable Development, 8(20), 178–189. ( ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online))
  • Nyamwanza, T., Mavhiki, S., Mapetere, D., & Nyamwanza, L. (2014). An analysis of SMEs’ attitudes and practices toward tax compliance in Zimbabwe. SAGE Open, 4(3), 759–776. https://doi.org/10.1177/2158244014542776
  • Olaoye, C. O., & Ekundayo, A. T. (2019). Effects of tax audit on tax compliance and remittance of tax revenue in Ekiti State. Open Journal of Accounting, 08(1), 1–17. https://doi.org/10.4236/ojacct.2019.81001
  • Olaoye, C. O., & Oyedijo, A. (2019). Factors influencing value-added tax compliance by small and medium-sized enterprises in Nigeria. Journal of Accounting and Taxation, 11(2), 11–20.
  • Pemstein, D., Marquardt, K. L., Tzelgov, E., Wang, Y., Medzihorsky, J., Krusell, J., Miri, F., & Von Römer, J. (2019). The V-Dem Measurement Model: Latent Variable Analysis for Cross-National and Cross-Temporal Expert-Coded Data. V-Dem Working Paper Series, 2019(21). http://www.ssrn.com/abstract=2704787
  • Podlipnik, J. (2017). The ability-to-pay principle as a primarily constitutional basis for tax norms of a financial nature. 1–15.
  • Razak, D. A., Abdullah, M. A., & Ersoy, A. (2018). Small- Medium Enterprises (SMEs) in Turkey and Malaysia a comparative discussion on issues and challenges. International Journal of Business, Economics and Law, 10(49), 2–591.
  • Reukauf, J. A. (2018). The correlation between job satisfaction and turnover intention in small business. (Doctoral dissertation). Walden University. https://www.proquest.com/openview/15b62d248f97ce13e6fc5f82568b1bbd/1?pq-origsite=gscholar&cbl=18750
  • Reukauf, J. A. (2018). The correlation between job satisfaction and turnover intention in small business. Walden Dissertations and Doctoral Studies.
  • Rosalita, R. A., & Aulia, F. R. (2023). Determinants of tax attitude in small and medium enterprises: Evidence from Indonesia. Cogent Business & Management, 10(1), 2160585. https://doi.org/10.1080/23311975.2022.2160585
  • Sandford, C. (Ed.). (1995). Tax compliance costs measurement and policy. Fiscal.
  • Schmolders, G. (1970). Survey research in public finance-behavioral approach to Fiscal theory. Public Finance, 25(2), 300–306.
  • Setyowati, M. S., Utami, N. D., Saragih, A. H., & Hendrawan, A. (2023). Strategic factors in implementing blockchain technology in Indonesia’s value-added tax system. Technology in Society, 72, 102169. https://doi.org/10.1016/j.techsoc.2022.102169
  • Shakkour, A. S. K., Almohtaseba, A. A., Matahenb, R. K., & Sahkkour, N. A. S. (2021). Factors influencing the value added tax compliance in small and medium enterprises in Jordan. Management Science Letters, 11, 1317–1330. homepage www.GrowingScience.com/msl https://doi.org/10.5267/j.msl.2020.11.007
  • Sidek, S., & Abdulraqeeb, R. M. A. (2022). The moderating effects of government supports towards VAT compliance among SMES in UAE: A Conceptual Framework. Mathematical Statistician and Engineering Applications, 71(3), 84–102. http://philstat.org.ph
  • Slemrod, J., Ur, O., & Waseem, R. M. (2019). NBER working paper series pecuniary and non-pecuniary motivations for tax compliance: Evidence from Pakistan.
  • Soku, M. G., Amidu, M., & William, C. (2023). Environmental tax, carbon emmission and female economic inclusion. Cogent Business & Management, 10(2), 2, 2210355. https://doi.org/10.1080/23311975.2023.2210355
  • Strumpel, B. (1966). The contribution of Survey to Public finance-Quantitative Analysis in Public Finance. Praeger Publishers.
  • Tareq, B. K., Alshira’h, A. F., & Alshirah, M. H. (2022). Determinants of tax compliance intention among Jordanian SMEs: A Focus on the Theory of Planned Behavior. Economies, 10(2), 30. https://doi.org/10.3390/economies10020030
  • Tehseen, S., Ahmed, F. U., Qureshi, Z. H., Uddin, M. J., & Ramayah, T. (2019). Entrepreneurial competencies and SMEs’ growth: The mediating role of network competence. Asia-Pacific Journal of Business Administration, 11(1), 2–29. https://doi.org/10.1108/APJBA-05-2018-0084
  • Usman, A. (2019). An emprical assessment of the impact of E-Commerce on value added tax revenue generation in Nigeria. IOSR Journal of Humanities & Social Science (IOSR-JHSS), 24(4), 6–17. https://doi.org/10.9790/0837-2404030617
  • Uwaoma, I., & George, T. P. (2015). Value added tax and the financial performance of quoted agribusinesses in Nigeria. International Journal of Business and Economic Development, 3(1), 78–86.
  • Uzor, E. (2017). Enhancing tax collection efficiency and compliance in Nigeria: The role of behavioural economics. Africa at LSE. http://blogs.lse.ac.uk/africaatlse/2017/03/20/enhancing­tax­collection­efficiency­and­compliance­in­nigeria­the­role­of­behavioural­economics/
  • Wadesango, N., & Chirebvu, G. (2020). The impact of Value Added Tax (VAT) on small and medium enterprises in a developing country. Academy of Accounting & Financial Studies Journal, 24(2), 1–12. https://3fd619a672ed257f8092a6506c0a00e1.pdf
  • Wadesango, N., Mutema, A., Mhaka, C., & Wadesango, V. O. (2018). Tax compliance of small and medium enterprises through the self-assessment system: Issues and challenges. Academy of Accounting & Financial Studies Journal, 22(3), 1–15. https://3941abb5303f5f997f250de0473ba22c.pdf
  • Wahab, A., Ntim, C. G., Mohd Adnan, M. M., & Ling, T. W. (2018). Top management team heterogeneity, governance changes and book-tax differences. Journal of International Accounting, Auditing & Taxation, 32, 30–46. https://doi.org/10.1016/j.intaccaudtax.2018.07.002
  • Wanjohi, M. S. (2010). Taxpayer’s Attitude and Tax Compliance Behaviour in SMEs. Unpublished Masters of Business Administration Thesis, University of Nairobi.
  • Werekoh, E. A. (2022). The Effects of Taxation on Economic Development: The Moderating Role of Tax Compliance among SMEs. Research Square. https://doi.org/10.21203/rs.3.rs-1238141/v1
  • Widianto, R. (2015). The Effect of Demographic Factors on Individual Tax Compliance in Duren Sawit. Unpublished Thesis in partial fulfillments of award of Master degree of Arts In Development Studies. International Institute of Social Science,
  • Ya’u, A., Saad, N., & Mas’ud, A. (2020). Effects of economic deterrence variables and royalty rates on petroleum profit tax compliance in Nigeria: An empirical analysis. International Journal of Energy Sector Management, 14(6), 1275–1296. https://doi.org/10.1108/IJESM-12-2019-0011
  • Zabri, S. M., Ahmad, K., & He, T. G. (2016). Understanding of Goods and Services Tax (GST) and spending behavior among Malaysian consumers. International Business Information Mangement Association, 27-34. https://core.ac.uk/reader/83541080