Accounting errors that influence value added tax reporting quality: A study of accounting and regulation

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Abstract

The aim of this study is to explore the accounting errors that influence value-added tax (VAT) reporting quality in Lebanon and to identify any additional accounting errors not considered before. The data instrument is a questionnaire; it was developed based on previous studies’ statements (Mat Jusoh et al., 2021), which were validated by a pilot test. The population selected is composed of all 1,691 practising certified public accountants in Lebanon who are registered with the Lebanese Association of Certified Public Accountants (LACPA). The results showed several accounting errors that have a significant influence on VAT reporting quality in Lebanon, including tax rate errors, cutoff period errors, errors of principle, hiding transactions errors, mathematical errors, and overreporting expenses errors. Moreover, the exploratory approach concluded that there are two main problems that influence VAT reporting quality: the unclear procedures for tax reporting and the absence of guidance regarding the extreme fluctuation of exchange rates in Lebanon. This study provides new insight and a better understanding of the accounting errors that influence VAT reporting quality.

Keywords: Value Added Tax, Accounting Errors, Tax Reporting, Corporate Governance

Authors’ individual contribution: Conceptualization — M.A.N.; Methodology — M.A.N. and M.G.G.; Validation — M.A.N. and M.G.G.; Formal Analysis — M.A.N.; Investigation — M.A.N.; Resources — M.A.N.; Data Curation — M.A.N.; Writing — Original Draft — M.A.N.; Writing — Review & Editing — M.A.N.; Visualization — M.A.N.; Supervision — M.G.G.; Project Administration — W.H.; Funding Acquisition — M.A.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M48, K0

Received: 04.02.2024
Accepted: 02.08.2024
Published online: 06.08.2024

How to cite this paper: Al Najjar, M., Ghanem, M. G., & Higazi, W. (2024). Accounting errors that influence value added tax reporting quality: A study of accounting and regulation. Journal of Governance & Regulation, 13(3), 189–197. https://doi.org/10.22495/jgrv13i3art16