The practice of value added tax and its problems in Jimma Zone Revenue Authority

This study was focused particularly on ideut fying and assessing the prohlems in association with the practice 0/ f'A T at Jimma Zone Revenue Authority. To achieve this objective, the researcher used primary and secondary do/a. The researcher used questionnaires, interviews and relevant documents to gather primary and secondary datafrom the data sources. Pie charts, graphs, table, Percentages \vere used in analyzing the collected data. VAT practice in Jimma Zone has faced different confronts. The mail! problems that encountered are: misunderstanding of the public in general and business community in particular regarding the VAT laws, resistance against registrations for VAT hy some traders, administration inefficiency, and provisions of understatedfinancial statements, /111 these constraints hinder the smooth practice (~f VAT and achieve the desired objectives as possible. On the basis of these findings, the researcher recommends that the authority should train the taxpayers about the rules and regulations of l '/I T continuously. recruiting nell' employees and give nonstop training for the existing once, if should also increase its follow-up and investigation to control refusal enterprises, as well as effectively and efficiently performing the tasks of identification of VAT taxpayers, processing of returns, controlling collections, auditing taxpayers, recognizing genuine taxpayers 01161 levying penalties to tackl« the problems it has encountered