Effect of Electronic Tax Education Platforms on VAT Compliance in the Hospitality Industry in Machakos Town, Kenya
DOI:
https://doi.org/10.53819/81018102t2545Abstract
Value Added Tax remains a critical source of government revenue in Kenya, yet compliance levels, particularly among small and medium-sized enterprises, continue to fall short of expectations. The hospitality industry comprising hotels, restaurants, and lodges is one of the most affected sectors due to its cash-based operations, limited formal systems, and inadequate tax knowledge. This study sought to examine the effect of electronic tax education platforms on VAT compliance. The study was guided by the Deterrence Theory. A descriptive research design was adopted, targeting all 120 registered hospitality establishments in Machakos Town. A census approach was used, with primary data collected through structured questionnaires. Descriptive and inferential statistics, including multiple linear regression, was used to analyse the data with the aid of SPSS version 27. From the results, it was found that electronic tax education platforms have a positive and significant relationship with VAT compliance in the hospitality industry in Machakos Town (β = .328; p = 0.000 < 0.05). The study concluded that taxpayer education positively affects value added tax compliance in the hospitality industry and the relationship is positively moderated by leveraging in tax technologies. The study recommends that electronic tax education platforms should be tailored to address the sector's unique needs, offering interactive modules on VAT registration, invoicing and reporting for diverse revenue streams.
Keywords: Hospitality Industry, VAT Compliance, Machakos Town, Kenya
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