Factors Affecting VAT Compliance in Companies: Evidence from Kingdom of Bahrain

Governments must make every effort to ensure that taxes are collected properly and effectively since they are an essential source of funding for development programs. All tax authorities face the same problem: it has never been simple to get all taxpayers to follow a tax system's laws. The purpose of this study is to examine how Taxpayer Knowledge, Cost of Tax Compliance, and Fines and Penalties affect VAT compliance as perceived by companies. Data is gathered by distributing questionnaires to all companies that registered in VAT compliance in Bahrain. The study's findings could help policy makers and tax authority managers to know the level of tax compliance and hence, make an appropriate decision to enhance the level of compliance. It will guide policy makers to know the factors that significantly influence tax compliance.