Transparency of Value-Added Tax System and Audit Risk: A Case of the Retail Sector in Masvingo Urban, Zimbabwe

Abstract

The paper aims to evaluate the relationship between transparency of Value-Added Tax (VAT) and audit risk in the retail sector in Masvingo urban. The paper used a descriptive survey approach. A likert scale questionnaire and face to face interviews were employed. Record keeping is poor and VAT fraud is high. It was concluded that, audit risk is high where there is lack of transparency in the VAT system. The possible implication is to assist the Zimbabwe Revenue Authority and the retail sector to realise their role in championing recent technology to broadening government revenue base.