The Role of SME Reputation on VAT Compliance Intention among SMEs in Nigeria

Abstract

This study examines the role of SME reputation on VAT compliance intention among SMEs in Nigeria. Data were collected through the administration of 400 questionnaires to SMEs located in Kano, North-West Nigeria. A total of 23 indicator items were measured using a 5-point Likert scale. IBM SPSS Statistics version 29 was utilized for data analysis. The results reveal a positive and significant relationship between SME reputation and VAT compliance intention, attitude toward VAT compliance and VAT compliance intention, subjective norms and VAT compliance intention and perceived behavioural control and VAT compliance intention among SMEs in Nigeria. The study recommends integrating SME reputation with the Theory of Planned Behaviour to address VAT compliance challenges among SMEs. Such integration can enhance timely remittance of VAT to the appropriate tax authorities. The findings also provide useful insights for policymakers in developing SME-specific strategies to improve VAT
compliance. In addition, future research is encouraged to replicate the study with a larger sample size and across other regions of Nigeria to validate the consistency of the results.