An evaluation on the effectiveness of electronic fiscal devices on vat compliance and revenue collection in Zimbabwe: A case study of ZIMRA (2011-2014)

Abstract

Zimbabwe Revenue Authority’s (ZIMRA) mandate is to collect revenue for the government of Zimbabwe. ZIMRA is well known of meeting its set target by the Ministry of Finance and Economic Development. Value Added Tax (VAT) is one of the tax heads that ZIMRA uses as a method of collecting revenue in Zimbabwe. VAT a tax system which is levied, charged and collected on behalf of the Zimbabwean government on the value of supplies made by registered operators of goods and services and importations of any goods and services into Zimbabwe. ZIMRA then introduced the use of Electronic Fiscal Devices to enhance efficiency in the collection of VAT. The Electronic Fiscal Devices were introduced in 2011. This study therefore seeks to find out the effectiveness of these devices in enhancing tax compliance at the same time as revenue collection.