Abstract
This study examined the determinants of Value Added Tax (VAT) compliance among small and mediumsized enterprises (SMEs) in Abuja’s hospitality industry, Nigeria. The study was motivated by persistent concerns regarding low VAT compliance among SMEs despite continuous tax reforms and digitalisation initiatives introduced by the Federal Inland Revenue Service (FIRS). Specifically, the study investigated the influence of tax knowledge, perceived fairness of the tax system, taxpayer attitude, and access to tax services on VAT compliance behaviour. The study adopted a quantitative explanatory research design using primary data collected through structured questionnaires administered to SMEs operating within Abuja’s hospitality sector, including hotels, restaurants, guest houses, and event centres. Out of 348 distributed questionnaires, 300 valid responses were retrieved and analysed using descriptive statistics, Pearson Product Moment Correlation, and Ordinary Least Squares (OLS) multiple regression analysis. The findings revealed that although respondents generally possessed substantial VAT knowledge and positive perceptions regarding tax fairness and compliance obligations, none of the explanatory variables significantly influenced VAT compliance. The regression results showed that tax knowledge, perceived fairness, taxpayer attitude, and access to tax services collectively explained only 0.7% of the variation in VAT compliance (R² = 0.007; F = 0.506; p > 0.05). The study concludes that VAT compliance among hospitality SMEs in Abuja is influenced more by institutional and structural factors than by behavioural variables alone. The study recommends simplified VAT procedures, transparent enforcement mechanisms, improved digital tax systems, and enhanced institutional accountability to strengthen voluntary tax compliance among SMEs in Nigeria.