Value Added Tax Implementation among Small and Medium Enterprises and Household Consumption Patterns in Delta State, Nigeria

Abstract

This study explores the relationship between Value Added Tax (VAT) implementation among Small and Medium-Sized Enterprises (SMEs) and household consumption patterns in Delta State, Nigeria. The methodology employed was the descriptive survey design. Using the purposive sampling technique, data were sampled from 178 respondents comprising 90 CEOs of 18 selected SMEs registered with Small and Medium Enterprises Development Agency in Nigeria (SMEDAN) and 88 VAT-able household consumers across the 3 senatorial districts in Delta State. The data analyses adopted was the descriptive and inferential statistics. The analysis revealed that public perception of VAT, VAT Compliance and VAT policy awareness exhibit significant relationship with household consumption patterns. The study recommends targeted public awareness campaigns to educate households on VAT policies and their benefits, greater transparency in the use of VAT revenues for visible developmental projects, and simplified tax systems to improve compliance.

Key Words: Compliance, Public Perception, Consumption, Value Added Tax