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Title: Value Added Tax Policy and Business Performance. A case study: Central Trading Company Ltd. Kampala Central Division, Uganda
Authors: Koech, L. Jepkemoi
Keywords: Value Added Tax
Business Performance
Kampala Central Division, Uganda
Issue Date: Oct-2011
Publisher: Kampala International University, College of Economics and Management Sciences
Abstract: The study was designed to establish the effect of Value Added Tax policy on business performance of Central Trading Company ltd. The researcher was triggered to undertake this study by the fact that the company meets with the failure to increase sales and this has a big impact on organizational performance in terms of sales revenue maximization and profitability. The study was conducted to find out the way VAT is imposed and administered, to establish the factors affecting business performance of the company, and the relationship between VAT policy and business performance. The researcher employed a longitudinal and analytical researcher design to analyse Value Added Tax policy and its effect on business performance. The data was collected from both secondmy and primary sources through use of interviews and questionnaires. Respondents were selected by use of purposive sampling and simple random sampling. The findings from the study revealed that the company uses accrual accounting method when accounting for VAT. Also findings showed that VAT is charged on the registered persons with a turnover of 50 million shillings in three consecutive calendar months and that VAT is charged on the 15th day of the following month and remitted to URA. It was also discovered that factors like low purchasing power, competition and economic changes affect business performance of the company. Finally, findings indicated an inverse relationship between Value Added Tax and business performance. In line with the findings, the following recommendations were made; the standard rate for VAT of 18 percent should be reduced to say 12 percent. URA also should be able to consider problems facing taxpayers and try to design tax policies accordingly to reduce on the taxpayers burden.
Description: A research dissertation submitted to the School of Business and Management, in Partial Fulfillment of the Requirement for the Award of Bachelors Degree in Business Administration of Kampala International University.
Appears in Collections:Bachelor of Business Administration (BBA)

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