Influencing factors on small and medium enterprises (smes) compliance to electronic fiscal devices use in Tanzania Evidence from Ilala Municipality

Influencing factors on small and medium enterprises (smes) compliance to electronic fiscal devices use in Tanzania Evidence from Ilala Municipality Emmanuel Ayubu Mwakilema MBA (Marketing) University of Dar es Salaam, Business school, 2020 This study examined factors affecting SMEs compliance to electronic fiscal devices (EFDs) in Tanzania. It was guided by three predicting variables namely quality of record keeping, perceived cost of the device and formality of the enterprises as they influence SMEs compliance to EFD. The study was performed using explanatory study design whereas causality relationship was conducted to generate knowledge on the inquired subject with the help of structured questionnaires. Data were collected from the owners or managers of the SMEs and employees in Ilala Municipality. Moreover, the interview guide was to gather data from 3 key informants. Data were primarily analyzed quantitatively using multiple regression analysis using SPSS version 23.0 to help computation. Moreover, quotations from key informants enriched quantitative component of the analysis. Study results were evident that two predictors namely quality of record keeping and perceived cost of the device were positive with significant effect on SMEs compliance, while formality of the enterprises had insignificant effect on SMEs compliance. This implies that compliance of SMEs on EFD machines is affected mostly by the quality of record keeping and perceived cost of the device. Therefore, the study recommends that the government must work on the output generated from the receipts and other quality of the records to influence users. Also, the government must assure that the burden of the machines in terms of cost is not enforced to the entrepreneurs.