In pursuance of this investigation , the research used both primary source of data collection , like oral interview as well as secondary sources such as textbooks , Journals ,Magazines and professional bodies . The data collection were then analysis using simple percentage , pie chart and the chi- square .

It will be noted that any VAT depends on the value Added and there is no way VAT could be attempted in isolation of this value Added. Since VAT also depends on income and profitability of individuals and companies, the quest for VAT should be planned and coordinated

Effect was made in this research work to investigate on the constraints encountered in the imposition of VAT and also in the recommendation were given the way of overcoming them .

This study is obvious if we should realize that this work will enable us to know this contribution from VAT has helped in the Nigerian general economy so far and know if it worth it or not.

The project is divided into five chapters in which the first chapter deals with the introductory part , statement of the problem, purpose of the study , significance of the study, research hypotheses , scope and limitations and definition of terms.

Chapter tow deals with review of related literature as related to VAT and as it affects the tax payers, definition of VAT. The evolution of Value Added Tax , why modified value added tax in Nigeria , sales tax and value added tax , value added tax in Nigeria and the implication of VAT don the tax payers .

Chapter three deals with research design and methodology used , primary , secondary, sources of data analysis , population and sampling procedures.

In chapter four was discussed , define presentation and analysis and testing of hypothesis

Chapter five finally deals with findings , conclusion and recommendation.

TABLE OF CONTENT

Title page I

Approval page ii

Dedication iii

Acknowledgement iv

Abstract v

Table of content vi

CHAPTER ONE

1.0 Introduction

1.1 statement of problem

1.2 Purpose of study

1.3 Significance of the study

1.4 Research hypothesis

1.5 Limitation scope of the study

1.6 Definition of terms

CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE

2.1 The value added tax defined

2.2 Evolution of value added tax

2.3 Why modified value added tax in Nigeria

2.4 Sales tax and value added tax

2.4Value added tax in Nigeria

2.6 The implication of VAT on the taxpayers

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 Geographical area of the study

3.2 Target population

3.3 Sampling size and procedure

3.4 Data collection techniques

3.5 Questionnaire design

3.6 Administration of instrument and validity

CHAPTER FOUR

4.0 Data presentation and analysis

4.1 Data presentation

4.2 Test of hypotheses

CHAPTER FIVE

5.0 Summary of findings, conclusion and recommendations

5.1 Findings

5.2 conclusions

5.3 Recommendations

BIBLOGRAPHY

APPENDIX: QUESTIONNAIRE

CHAPTER ONE

INTRODUCTION

Taxes in modern economics are the most important source of government revenue. The are compulsory levies that are regularly imposed, and as a rule, not designated for a special purpose they are regarded as a contribution to the general revenue pool from which most government expenditure are financed.

Taxation occupies a principal position in the Nigerian economy as in other countries. Value – Added –Tax was introduced in Nigeria currently to replace the old sales tax. The old sales tax, has been in operation under the federal government legislated decree No 7 of 1986, but it is operated on the basis of residence

However , the newly introduced value added tax is operated under the federal government legislated decree No 102 of July 1993. VAT is a form of indirect tax whose burden is shifted from the manufacturers through the distribution channels to the final consumer who then bears the final burden

Value added tax came into effect on 1^st January 1994 the tax is a tax on consumption. VAT is a multi stage tax which is impose on goods and services