Value Added Tax Administration and Filing Compliance in the Public-Sector: Empirical Evidence from Uganda

Value Added Tax (VAT) filing compliance remains a persistent administrative challenge within Uganda's public sector, despite sustained reforms by the Uganda Revenue Authority aimed at improving tax administration and enforcement. Public sector institutions play a critical role in VAT compliance, yet empirical evidence on the extent to which VAT administration influences filing behavior within this context remains limited. This study examines the effect of VAT administration on filing compliance among public sector institutions in Uganda, drawing empirical evidence from institutions located in Kampala City. Guided by the Theory of Planned Behavior and Economic Deterrence Theory, the study adopts a quantitative cross-sectional research design. Data were collected from 243 respondents drawn from government ministries, agencies, state corporations, and public educational institutions using a structured questionnaire. Simple linear regression analysis was employed to test the effect of VAT on filing compliance. The findings reveal a moderately strong and statistically significant positive relationship between VAT administration and filing compliance (R = 0.667, R² = 0.445, p < 0.001). VAT administration accounts for approximately 44.5% of the variation in filing compliance, suggesting substantial predictive power. Regression results further show that VAT has a significant positive effect on filing compliance (β = 0.667, B = 0.582, t = 13.641, p < 0.001), leading to the rejection of the null hypothesis. The results suggest that clear VAT procedures, effective administration, and awareness of compliance obligations significantly enhance filing behavior in the public sector. The study concludes that strengthening VAT-specific administrative mechanisms is essential for improving filing compliance and supporting sustainable public revenue mobilization in Uganda.