Effectiveness of Electronic Fiscal Devices System in Improving VAT Compliance in Morogoro Municipal Council, Tanzania

This paper assessed the effectiveness of Electronic Fiscal Devices (EFD) system in improved VAT compliance in Tanzania Revenue Authority, taking Morogoro Municipality as a case study. The research used a cross-sectional research design whereby ten per cent (10%) of the target population was used as the sample size for the study. Using simple random sampling technique, 39 VAT registered traders were selected from a population of 387 VAT registered traders. Moreover, 11 Tanzania Revenue Authority (TRA) officers, who were the key informants for the study, were selected from a total population of 109 TRA officers working at Morogoro Regional Office. Both primary and secondary data were used. The former were collected using questionnaires and a key informant interview guide, and the latter were collected by reviewing various performance documents obtained from the study area.  Analysis of the primary data was done using descriptive statistics generated in the Statistical Package for Social Sciences (SPSS) software. Empirical findings revealed that the EFD system assisted in improvement of VAT compliance. Based on the research findings, the study concludes that use of the EFD system has a substantial impact on the improvement of VAT compliance. The article offers several recommendations to various actors.