Unraveling The Dynamics Of Electronic Fiscal Device Adoption: Insights From Hawassa City's Vat Registered Traders

Abstract

    This study aimed to assess the influencing factors affecting the utilization of Electronic Fiscal Devices (EFDs) among Value Added Tax (VAT) registered traders in Hawassa city. Employing an explanatory research design with a mixed research approach, both primary and secondary data sources were utilized. Through stratified random sampling, a representative sample of respondents from various business types was selected. Questionnaire data was analyzed using SPSS software version 26, employing descriptive statistics such as frequency, percentage, mean, and standard deviation. Additionally, inferential statistics including correlation and multiple linear regression analysis were applied to identify key factors impacting the use of EFDs among VAT registered traders. Qualitative analysis of interview data was employed to triangulate the quantitative findings. The study's outcomes indicated that inadequate training for VAT registered taxpayers, high costs of EFDs, lax tax law enforcement, and taxpayers' perceptions were significant factors influencing EFD utilization. Consequently, the study recommends that revenue authorities provide pertinent technical training, federal revenue offices subsidize EFD purchasing and maintenance costs, and governmental efforts ensure the inclusion of all eligible taxpayers in EFD usage.