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VADA STRATEGIC PLAN
2015 -2017
VADA STRATEGIC PLAN ........................................................................................................... 1
1.0 BACKGROUND .............................................................................................................. 5
2.0 INTRODUCTION OF VAT IN AFRICA ................................................................................ 5
2.1 Adoption and perceived benefits .................................................................................. 5
2.2 Performance................................................................................................................. 6
2.3 Growth potential .......................................................................................................... 6
2.4 Integrated Revenue Authorities .................................................................................... 7
2.5 Federal and Central Structures ...................................................................................... 7
2.6 Location of VAT Administration in Revenue Administrations ......................................... 8
2.7 Challenges: ................................................................................................................... 8
2.7.1 Role and Revenue Performance ................................................................................ 8
2.7.2 Burden of Tax Distribution ......................................................................................... 8
2.7.3 Administration Aspects .............................................................................................. 9
3.0 FORMATION OF VADA .................................................................................................. 9
3.1 VADA Formation and Objectives ................................................................................... 9
3.2 VADA as an Organisation .............................................................................................. 9
3.2.1 Target Membership ................................................................................................... 9
3.2.2 Current Membership ............................................................................................... 10
3.2.3 Institutional Governance and Structure .................................................................. 10
3.2.4 Partners and Collaborators ...................................................................................... 10
3.3 VISION, MISSION AND CORE VALUES ........................................................................... 10
3.3.1 Vision ....................................................................................................................... 10
3.3.2 Mission ..................................................................................................................... 11
3.4 Core Values ................................................................................................................ 11
4.2 Strengths .................................................................................................................... 14
4.2.1 Highly Professional and Experienced Tax Administrators ....................................... 14
4.2.2 Support by African Governments and Revenue Administrations. ........................... 15
4.2.3 International Organisations’ Support ......................... Error! Bookmark not defined.
4.3 Weaknesses ............................................................................................................... 15
4.3.1 Weak Secretariat Support. ...................................................................................... 15
4.3.2 Weak Financial Base ................................................................................................ 16
4.3.3 Limited Membership ................................................................................................ 16
4.4 Opportunities ............................................................................................................... 17
4.4.1 Regional Economic Blocs ......................................................................................... 17
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4.4.2 ICT Application ......................................................................................................... 17
4.4.3 International and Business Support for efficient VAT Systems ............................... 17
4.5 Challenges .................................................................................................................. 17
4.5.1 Relatively Young Organisation ................................................................................. 17
4.5.2 VAT Policy and Legislative Disparity in Member Countries ..................................... 18
4.5.3 Engagement with Regional Economic Blocks and other alliances ........................... 18
5.0 STRUCTURE VADA’s STRATEGIC PLAN 2014/15 – 2016/17 ............................................ 19
5.1 Overview .................................................................................................................... 19
5.2 Strategic Goals and Initiatives (Statements) ................................................................ 20
5.3 Goal No 1 – Formalization of VADA’s legal Identity and international status ................. 20
5.3.1 Secure formal registration as a legal entity. ................................................................. 21
5.3.2 Secure recognition by respective authorities. ......................................................... 21
5.3.3 Secure multilateral organisation diplomatic status. ................................................ 21
5.3.4 Secure tax-exempt status. ....................................................................................... 22
5.3.5 Review VADA Organisation structure and populate................................................ 22
5.4 Goal No. 2 Capacity Building and Support .................................................................... 22
5.4.1 Human Capacity Building ......................................................................................... 23
5.4.2 Institutional Capacity Building ................................................................................. 23
5.4.3 Infrastructure Capacity Building .............................................................................. 24
5.5 Goal No 3 Policy Advocacy and Engagement ................................................................ 25
5.5.1 Build Policy Advocacy Capacity ............................................................................... 25
5.5.2 Policy related research and publication .................................................................. 25
5.5.3 Policy engagement and collaboration ..................................................................... 25
5.5.4 Harmonisation of legal and practice frameworks ................................................... 26
5.6 Goal No. 4 Partnership and Strategic Alliances............................................................. 26
5.6.1 Promote collaboration with other regional tax bodies and institutions. ................ 26
5.6.2 Create platform ....................................................................................................... 26
5.6.3 Establish linkages with multilateral and international organisations ...................... 26
6.0 IMPLEMENTING VADA’s STRATEGIC PLAN ................................................................... 27
6.1 Strategic Results Indicators .............................................................................................. 28
6.2 Details of the intended results of the Plan ................................................................... 27
6.2.1 Capacity enhancement ............................................................................................ 27
6.2.2 Technical Support and Strategic Alliance ................................................................ 27
6.2.3 Policy advocacy and enforcement ........................................................................... 27
6.2.4 Access to knowledge and technologies ................................................................... 28
7.0 MONITORING AND EVALUATION ................................................................................ 29
7.1 Monitoring and Evaluation (M&E) Institutional framework ......................................... 29
7.2 Monitoring and Evaluation (M&E) Measures ............................................................... 29
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7.2.1 Strategic Initiatives .................................................................................................. 29
7.2.2 Performance ............................................................................................................ 30
7.2.3 Strategic Performance Measures ............................................................................ 30
7.2.4 Key Performance Indicators (KPIs) ........................................................................... 30
7.3 Reporting ................................................................................................................... 30
8.0 CONCLUSION .............................................................................................................. 31
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LIST OF ABBREVIATIONS AND ACRONYMS
ATAF - African Tax Administration Forum
CATA - Commonwealth Association of Tax Administrators
CEMAC - Economic and Monetary Community of Central Africa
CIAT - Inter American Center of Tax Administration
ECOWAS - Economic Community of West African States
EU - European Union
EXCO - Executive Council
GNP - Gross National Product
ICT - Information and Communication Technology
IMF - International Monetary Fund
IOTA - Intra – European Organization of Tax Administration
KPI - Key Performance Indicator
KRA - Key Result Areas
M&E - Monitoring and Evaluation
VADA - Forum for Value Added Tax Administrators in African
VAT - Value Added Tax
SWOC - Strengths, Weaknesses, Opportunities and Challenges
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1.0 BACKGROUND:
The Forum for the Value Added Tax Administrators in Africa (VADA) was
conceived in November, 1998 and its Constitution adopted in August, 2001
with the major purpose of creating a platform for Africa’s VAT
administrations to exchange of ideas, experience, skills and information on
the tax administration that VAT can be relied upon to contribute significantly
towards economic and social development of Africa Continent.
In pursuit of this objective VADA has prepared a Strategic Plan as a blue
print for its strategies and activities. This Strategic Plan sets out a medium
term direction for VADA, taking as a starting point, the current position in
terms of VADA’s institutional capacity and VAT administration issues to be
addressed, their challenges and possible solutions.
2.0 INTRODUCTION OF VAT IN AFRICA
2.1 Adoption and perceived benefits
Although relatively new, the Value Added Tax (VAT) is currently
implemented in many African countries and spreading fast. The tax
has gained fame very rapidly and was adopted on the Continent as
part of the wide ranging tax administration reforms in the mid-1990s,
being preferred to other turnover-based taxes, especially, the
distortional Sales Tax and Goods and Services Tax. This is because
domestic revenue mobilisation is central to the development and
poverty eradication efforts in most African countries. To improve
living standards and create jobs, African governments need to
provide their citizens with better health care, better education, and
more infrastructures. The need to provide social services such as
build hospitals, schools, and to pay doctors, nurses, and teachers.
Raising tax revenues is, therefore, a necessary element for
governments to spend on providing more of these essential services
and, in turn, reduce poverty.
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Broadly, three kinds of VAT were introduced in Africa. Firstly, the
countries in Southern Africa modelled their VAT, at the initiative of
South Africa which is fused on the New Zealand VAT that has very
few exemptions. Secondly, countries in the Eastern Africa based
their VAT on the UK VAT which resembles the EU’s Sixth Directive
on Value Added Tax. Thirdly, most of other countries that are
members of CEMAC or ECOWAS drew on the VAT in France which
also resembles the EU’s Sixth Directive on VAT.
With its simplicity, neutrality, and buoyant characteristics, VAT fitted
well in the Continent’s strategies for increasing domestic capacity to
fund social services and development programmes. However, its
implementation has had challenges that tax administrations sought
to resolve through consultation.
2.2 Performance
VAT has gained rapid significance in Africa’s resource mobilisation
strategies, to account for more than a half of all domestically raised
resources in most of the fifty four (54) African countries, within a
decade of its adoption in Africa. This enabled further trade
liberalisation, with its tenet efficiency, gains and broader
competitiveness. These results have incentivised even more African
countries to adopt VAT as their major instrument for raising domestic
revenue. Moreover, many of the countries that implemented VAT
have witnessed a gradual but consistent upward trend in their overall
revenue efforts.
2.3 Growth potential
The increasing need for the financing of public programmes and the
focus on domestic resources mobilisation emphasize the growing
importance of VAT to the Continent. At the same time, the emerging
globalised framework for most business operations require
increased cross border coordination of tax policy and administration
alike. Economic policy approximation and harmonisation is being
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pursued through regional economic blocs and multilateral
organisations at the international level. Tax administrations are
expected to follow a similar pattern, following business operations
across borders, and coordinating actions. As a forum for
coordination of such action by administrators of an increasingly
important instrument of taxation (VAT), VADA’s capacity to deliver
its Mission must therefore grow and cope with its functional
importance.
2.4 Integrated Revenue Authorities
Many countries in Africa have established semi-autonomous
revenue administrations in order to increase the level of
responsiveness and efficiency in serving taxpayers. The traditional
institutional structures of tax administrations inherited from central
government were based on type of tax, whereby direct tax, indirect
tax, and customs duties often fell under distinct departments. In
order to minimize the need for taxpayers to respond to multiple
revenue agencies, some countries have integrated their revenue
administrations by merging direct and indirect tax operations.
In many of the VADA members’ countries, VAT is administered by
units responsible for domestic taxes within organisations that
encompass customs duties administration as well. Strengthening
VAT administration is therefore more likely to generate benefits to
other domestic tax and customs operations.
2.5 Federal and Central Structures
VAT administration in most African countries falls under the ambit of
the central national government. However, there are possibilities of a
devolved VAT administration where the structure of the government
in the respective country is federal.
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2.6 Location of VAT Administration in Revenue Administrations
Based on the conception of integration in tax administration, different
tax types are administered along operational functions of tax
assessment, collection, enforcement and accounting as against tax-
type (direct and indirect taxes) administration; VAT is now
categorized, in a number of tax administrations, as a domestic tax
rather than an indirect tax. This approach renders VAT subject to
same strategic priorities, spending allocated resources and
achieving performance goals as expected of other domestic taxes,
including direct taxes.
2.7 Challenges:
VADA member VAT administrations are desirous of administering
well designed and administered VAT which does not distort
domestic production and distribution. However, VAT systems in
Africa face several challenges including the following:-
2.7.1 Role and Revenue Performance
There is a general agreement that the main revenue
generating role in a system of tax on goods and services
should be assigned to a general, broad-based and neutral
consumption tax such as VAT. Although excise duties on
widely consumed goods like tobacco, alcoholic drinks and
petroleum products can generate substantial tax yield, their
coverage is limited. Hence, VAT has the challenge to meet
the expected role and revenue performance.
2.7.2 Burden of Tax Distribution
All VAT administrations attempt to mitigate the regreasivity of
VAT either by exempting essential goods and services,
disproportionately consumed by the poor or by applying a
zero rate to them. VAT as tax is challenged to be broadly
proportional across various income groups and on their
levels of household expenditures.
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2.7.3 Administration Aspects
(a) The quality of VAT administration
The quality of VAT administration is absolutely critical
to the success of VAT as a revenue instrument.
Success in this context generally refers to economic
performance, as measured by a wide array of
indicators like compliance costs, administrative costs
per unit of revenue yield, VAT productivity etc. The
quality of VAT design itself will have a strong impact on
its administration’s ability to operate the system.
(b) Dealing with net VAT credit positions and Refunds
Net credit positions arise when input VAT exceeds
output VAT during a particular filing period. Valid VAT
refund claims should be honoured as promptly as
possible. Delays in making refunds have non-neutral
and discriminatory effects. Refund delays underscore
the validity of the VAT system because the
administration retains money to which it is not entitled.
3.0 FORMATION OF VADA
3.1 VADA Formation and Objectives
The Forum for the Value Added Tax Administrators in Africa (VADA)
was therefore conceived by the East and Central Africa VAT
Commissioners in 1998 to bring together VAT Administrators across
the African Continent for creating a platform of generating ideas
through brainstorming sessions with a view to improving the
performance of VAT in their respective countries. It was formally
launched in Livingstone, Zambia in August, 2001.
3.2 VADA as an Organisation
3.2.1 Target Membership
Membership is open to African Tax Administrations
responsible for administering Value Ad ded Tax in their
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countries, whether in a segregated or integrated institutional
structure. VAT is being implemented in twenty two (22)
countries, all of which are prospective members through their
revenue administration institutions.
3.2.1 Current Membership
VADA’s current total membership is twelve (12) VAT
administrations from Ethiopia, Ghana, Lesotho, Malawi,
Nigeria, Rwanda, Sierra Leone, Tanzania, Uganda, and
Zambia. Botswana, Cote d’Ivoire, and Swaziland hold an
Observer status.
3.2.2 Institutional Governance and Structure
The Forum – Annual Conference
Executive Committee
Secretariat
3.2.2 Partners and Collaborators
VADA has established working links with the Crown Agents of
the United Kingdom. In addition, VADA works with Member
Administrations and the IMF Technical Assistance Centres in
Africa to organise capacity building events. Prospects for
further networking shall be pursued during the implementation
period of this Strategic Plan.
3.3 VISION, MISSION AND CORE VALUES
3.3.1 Vision
The Vision Statement spells out the institutional goals at the
highest level, depicting VADA's visualisation of itself well
beyond the plan period. Simply put, the Statement is what the
Forum’s leadership and members ultimately envision the
institution to be in terms of its services, values, and
contribution to the continent’s economies. As of the time of
preparing this plan, that vision may be stated as summarised
hereunder.
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A viable international organisation serving as a rallying point for
modernising Africa’s Value Added Tax systems.
3.3.2 Mission
The core purpose of VADA’s existence and business is to
engage in the business of enabling efficient and effective
implementation of VAT systems among the member
administrations. In so doing, VADA will support public resource
mobilisation and thereby facilitate the process of socio-
economic development in Africa. This mission may be
summarised as under.
To provide African economies and VAT Administrations with world
class technical services in support of efficient and effective VAT
systems.
3.4 Core Values
To achieve the Vision and Mission, VADA is committed to and shall
uphold the highest ethical practices in conducting its business. VADA
recognises that the objective of all our operations is human
development, and will therefore put PEOPLE - its staff, those of the
Member administrations, and the African public generally - first in all
its dealings to ensure delivery of a real difference in the people’s lives.
We shall endeavour to design products that address real challenges
and gaps, with the highest professional standards and quality to
ensure maximum satisfaction of our customers.
These are values we hold dearly, knowing that “Values-aligned”
managers and employees will benefit the entire organisation and our
clientele by demonstrating predictable and favourable decision-
making capabilities and behaviours. We are including these values in
this plan, not only to serve as a “compass” to influence and guide
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VADA’s behaviour, but also to inform the expectations of our clients
and stakeholders.
(a) Compassion: We go about our revenue administration function
with compassion, aware of its relevance for the
Continent’s socio- economic development.
(b) Commitment: We are committed to the improvement of the
Administration of VAT in Africa, and making the tax
workable for governments and business;
(c) Excellence: We strive to exceed the expectations of our
stakeholders, by performing at the highest level of
professionalism, and take pride in our
accomplishments.
(d) Integrity: We recognize the importance of unbiased accurate
information. We practice open, truthful, and timely
communication with all our stakeholders.
(e) Stewardship: We seek to ensure effective stewardship to Africa’s
VAT implementation effort, through focused
research and prudent application of data and
information to improve performance.
4.0 EVALUATION OF VADA’s INSTITUTIONAL AND OPERATING
ENVIRONMENT
4.1 SWOC ANALYSIS.
To develop appropriate strategies for achieving VADA’s Vision and
Mission, we analyse the Forum’s strengths, weaknesses,
opportunities and challenges. Strengths are the organisation’s
internal characteristics that give it an advantage in pursuing its
stated objectives while weaknesses, on the other hand, are internal
characteristics that place it at a disadvantage. Opportunities
represent elements in the external environment from the Forum’s
point of view that it could exploit and apply to its advantage.
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Challenges are elements in the external environment that could
cause trouble for the organisation. The objective of the analysis is to
ensure that the strategies developed for taking the organisation to
higher ground as it seeks to realize its vision allow for effective use
of the internal and external characteristics advantageous for the
attainment of its objectives, while mitigating the possible adverse
effects of the weaknesses and challenges.
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Internal
Po
sit
ive
STRENGTH WEAKNESSES
Neg
ati
ve
= = = = = = = = = = = = = =
Experienced Tax
Administrators
= = = = = = = = = = = = = =
Support by African
Governments and
Revenue Administrations
= = = = = = = = = = = = = =
Business Relevance
= = = = = = = = = = = = = =
= = = = = = = = = = = = = =
Legal Status
= = = = = = = = = = = =
Inadequacy of Financial
Base
Secretariat Support
Capacity.
= == = = = = = = = =
Limited Membership
= == = = = = = = = =
OPPORTUNITIES CHALLENGES
= = = = = = = = = = = = = =
Regional Economic Blocs
= = = = = = = = = = = = = =
ICT Application
= = = = = = = = = = = = = =
International
Organisations’ and
Business Support for
efficient VAT Systems
= = = = = = = = = = = = = =
= = = = = = = = = = = = = =
Relatively Young
organisation
= = = = = = = = = = = = = =
VAT Policy and Legislative
Disparity in Member
Countries
= = = = = = = = = = = = = =
External Influence
External
4.2 Strengths
4.2.1 Highly Professional and Experienced Tax Administrators
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Recent reorganisation of revenue administrations in Africa has
generated a strong base of professionals working in newly
established autonomous Revenue Authorities and Revenue
Boards in most countries, which is the core of a Community of
VAT Practitioners. This has in turn benefitted the Forum through
the quality of the discussion and engagement amongst its
Members. The body and quality of skills and knowledge held in
the constituent VAT administrations is growing rapidly, making
benefits from exchanges among them even more beneficial.
4.2.2 Support by African Governments and Revenue
Administrations.
The increasing importance of VAT as a share of domestic
revenue is attracting the attention of African governments to
the tax.
4.2.3 Business Relevance
After overcoming initial reservations about the tax, business
associations throughout the Continent are now working with
tax authorities to strengthen the tax. The businesses’ stance
is informed by the neutrality characteristic of the tax that
makes it a preferred tax instrument for businesses and
proponents of private sector development.
4.3 Weaknesses
4.3.1 Legal Status
The VADA Strategic Plan aims at setting a new direction for the
Forum and its member administrations in terms of its various
objectives through formal regional approaches, provision of
better services to its members in the form of technical
assistance, research and learning programmes. VADA also
intends to interact with government ministries, statutory bodies
and international organizations and make presentations on VAT
administration, policy and related subjects in recognition of its
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increasingly important role VADA intends to play in these subject
areas. To realise these objectives, VADA is to create for itself a
proper legal identity status so that it can be legally recognized
and accepted so as to develop a mutually beneficial relationship
with other professional and related institutions both within and
outside Africa.
4.3.2 Weak Secretariat Support
The envisioned organisation requires a vibrant secretariat to
coordinate multiple concurrent initiatives in addition to
continually liaise with the members and other stakeholders. The
current set up of the Secretariat, provided on a volunteer basis
by Ghana, is depending on volunteers to do work, and afflicted
by inability to act quickly and decisively is inadequate for the
purpose. A weak Secretariat is bound to adversely affect the
vibrancy of the Association.
4.3.3 Weak Financial Base
The Association’s activities are being funded through Annual
Members’ Subscriptions and hosting by Members. To a lesser
extent, VADA has also received free facilitation (technical
assistance) financed by donors for its workshops. To realise
the vision stated herein, the Association needs to substantially
increase its revenue generation capacity.
4.3.2 Limited Membership
Although significantly higher than its original list of four
founding members a decade ago, the VADA Membership of
thirteen (13) Member Administrations remains below the
potential of serving all the twenty two (22) African countries
already implementing VAT plus those preparing to do the
same. In addition, there is scope for enlisting sub-national
governments implementing VAT in decentralised fiscal regime.
VAT administrations currently not members of VADA represent
17
a missed opportunity for the Association’s ambition of
promoting efficient and effective VAT systems across the entire
Continent.
4.4 Opportunities
4.4.1 Regional Economic Blocs
Regional economic integration blocs present a unique
opportunity for implementing standardised VAT systems
within individual blocs and the Continent generally. VADA
should therefore work through and with the respective
secretariats of the regional blocs to promote effective VAT
practices.
4.4.2 ICT Application
VAT is an information intensive tax. The IT infrastructure in
Africa is improving fast, making adoption of sophisticated
administrative measures increasingly feasible and cost
effective. VADA is being looked to for possible advice and
experience sharing on VAT modernisation.
4.4.3 International Organisations’ and Business Support for
efficient VAT Systems
Multilateral institutions, including the IMF, provide support to
VAT implementing countries, and would be appropriate partners
for VADA collaboration. Moreover, the pace of globalisation
whereby businesses are taking an increasingly cross border
stance in planning their operations is generating higher
propensity for tax coordination among countries.
4.5 Challenges
4.5.1 Relatively Young Organisation
Like the tax it seeks to promote in Africa, VADA is a relatively
young institution, albeit with excellent prospect for growth as
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VAT implementation takes hold to include many of the countries
on the African Continent. VADA is therefore challenged to
expand its membership for better funding, experience and
expanded activities and programmes.
4.5.2 VAT Policy and Legislative Disparity in Member Countries
While the economic efficiency and neutrality of VAT is well
acknowledged, the policy and legislative instruments adopted in
individual countries vary. This presents a challenge in drawing
lessons and experiences from these countries and to align
procedures to boost intra-African trade.
4.5.3 External Influence
VADA strives for excellence in VAT administration so that it can
realize its Mission institutional goals. The Forum aims at growing
into an internationally well respected association. In order to
accomplish these goals, VADA must attain professional
advancement at highest level through wide membership base,
adequate and relevant resources and respect. In its efforts to
achieve these goals VADA is challenged by substantial external
influences considering existence of similar tax administration
associations both in Africa (IATA, ATAF) and IOTA in Europe
which all vie for same scarce resources and have different levels
of influence on potential member countries and international
organizations and regional economic blocks. Therefore external
influences affect VADA in its drive for expansion of its
membership base and interaction with donors and institutions
which might contribute to VADA success.
4.5.4 Engagement with Regional Economic Blocs and other
alliances
Improving the knowledge on best practices and access to trends
in partnership for implementation of VADA programmes
contribute to effective implementation of VADA functions and
19
activities. VADA is challenged to establish close working
partnership with Africa’s Regional Economic Blocs to promote
effective VAT practices and related programmes. Continental
mandates under Regional Blocs make it easier to synchronise
data standards and improve access to and build upon existing
knowledge and provide links to non-African and other
Multinational organisations.
5.0 STRUCTURE OF VADA’s STRATEGIC PLAN 2014 – 2016
5.1 Overview
5.1.1 In its Vision and Mission Statement VADA states in clear terms
its commitment to modernisation of Africa’s Value Added Tax
systems and provision of world class technical services to
African economies and VAT Administrations in support of
efficient and effective VAT systems.
5.1.2 The VADA Value Proposition emphasizes the unique and
special contributions of its benefits to its members in providing
a strategic platform of generating ideas and innovations for
improved VAT administration. In so doing VADA grants an
Africa Continent perspective which facilitates exchange of
knowledge, experience, skills and needed support from
governments and international organisations.
5.1.3 VADA’s Strategic Plan 2014 – 2016 links a series of Goals
and Activities developed in order to lead to the VADA
objectives which depend on the realisation of the following
results:-
Appropriate and efficient institutional and organisational
set up for VADA operations.
Human and institutional capacity for VAT administration
innovations
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Member administrations access to VAT administration
knowledge, skills and technology necessary for
modernisation.
Strategic decision making options and policy advisory and
engagement capacity and effective communication.
Platform for efficient and effective VAT administration
modernisation support.
5.2 Strategic Goals and Initiatives (Statements)
5.2.1 This Strategic Plan sets out VADA’s direction for the next
three years (2014 – 2016), starting from the current position
and the strengths, opportunities, weaknesses, and
challenges noted above. The focus of the Plan is to lay the
foundation for VADA to become a viable international
organisation serving as a rallying point for modernising
Africa’s Value Added Tax systems, and capable of
providing African economies and VAT Administrations
with world class technical services in support of
efficient and effective VAT systems.
5.2.2 Towards this medium term objective, the Plan has four core
strategic goals, namely (a) Formalize VADA’s legal Identity
and International status; (b) Capacity Building, and support
(c) Policy Advocacy and Engagement and (d) Partnership
and Strategic Alliance.
5.3 Goal No 1 – Formalization of VADA’s legal Identity and
international status
The Forum for Value Added Tax Administrators in Africa (VADA)
was conceived with the aim of bringing together VAT administrations
across the Africa Continent in order to realize its Vision of being a
viable organisation serving as a rallying point for modernising
Africa’s VAT systems. VADA acknowledges that meeting its Mission
21
to provide African economies and VAT Administrations across Africa
with world class-technical services in support of efficient and
effective VAT systems is ambitious. However VADA firmly believes
that this is achievable given the support of its member organisations’
national governments and the international community. To receive
such support VADA has to be legally recognised and accepted as an
institution representing the member tax administration’s interest.
This Strategic Goal entails strengthening the Forum’s legal status,
publicizing VADA’s identity, role, and expertise internationally; and
coordinating VAT policy and administration capacity building or other
initiatives involving its members. This Goal’s initiatives are as
follows:
Objectives, Strategies and Activities:
5.3.1 Secure formal registration as a legal entity.
VADA in order to be an international association which is
legally recognised and functioning within its member
Administrations’ jurisdictions and enhance their collaboration
status before the international community it must secure
formal registration as a legal entity in both the Headquarter
and member Associations’ countries. To achieve recognition
and formalisation of its status VADA has to review and update
its Constitution to allow such formalisation including location of
its Headquarters. The objective, strategic, strategies and
activities are:
5.3.2 Secure recognition by respective authorities.
To enable functioning legally in the member Administrations’
jurisdictions VADA must register as an entity under the
respective governments’ laws. VADA must therefore apply
for appropriate registrations.
5.3.3 Secure Multilateral Organisation Diplomatic Status.
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VADA foresees operating in the countries of its member
Associations and interacting with various governments and
regional blocs both in and outside Africa it is therefore
proper for VADA and its staff to be accorded diplomatic
status, hence enjoy diplomatic communities and privileges
which will ease their functioning.
5.3.4 Secure Tax-exempt Status.
As an international organisation receiving public financing
from multiple governments, and in order to ensure its
meagre resources are applied towards the most productive
activities, VADA must seek and secure tax exempt status.
The Secretariat shall secure this in the Headquarter
country, while every Member Administration shall be
responsible for securing the same in the respective home
country.
5.3.5 Review VADA Organisation Structure and Personnel
Functioning of VADA requires a strong secretariat and
sizeable labour force. VADA must review its Organisation
Structure and recruit appropriate and competent staff.
5.4 Goal No. 2 Capacity Building and Support
VADA envisions of a situation where its members and other
interested stakeholders have the ability to access and use
sufficiently coordinated VAT administration’s technical and
operational knowledge, skills and decisions in order to enhance their
abilities to evaluate and address issues related to VAT
administration and policy choices. Capacity Building in the context
of VADA Strategic Plan focuses on three elements of:-
Human Capacity Building referring to educational and training
of individuals to be aware of, access, use and develop
appropriate knowledge and skills.
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Institutional Capacity Building focussing on development and
fostering environment for the use of available information to
enhance decision making.
Infrastructure Capacity building is related to technologies
required to access, use and develop data and products for
application and decision making.
The objectives of the Goal are:-
5.4.1 Human Capacity Building
VADA seeks to coordinate and build upon existing efforts to
increase the efficient use of human resource asset and
access to and availability of human Capacity Building
Programmes to member Administrations. This will enhance
VAT tax knowledge to users. The following activities will be
undertaken:-
Training and development of its members’ work force.
Develop the directory of experts in specific areas for providing
technical training in member countries.
Actively source available training and capacity building
programmes and notify member countries.
Organise periodic trainings and workshops.
Develop benchmarks for planning and organizing technical
events including the role of host and other members.
Undertake staff capacity building events.
Encouraging staff exchange for training purposes.
Support VAT training in member countries.
5.4.2 Institutional Capacity Building
Developing Institutional Capacity Building will be focused on
increasing the effectiveness and efficiency in VAT
administration. The function will be on promoting coordination
and synergy and members’ access to resources for their
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capacity building programmes. The following activities are
earmarked:-
Implement a web-accessible comprehensive African VAT
information Platform (Data-warehouse) to support
benchmarking, research and decision making.
Build a data base that focuses on user needs, thus saving
interest of stakeholders.
Facilitate the development of comprehensive, sustainable
institutional capacity building efforts that address technical
and operational skills and enhancing member associations
institutional capacity.
Enhance the sustainability of existing capacity within VADA
forum by creating awareness amongst decision makers in
the VADA membership.
5.4.3 Infrastructure Capacity Building
Technological solutions will be balanced with legal framework
changes and business systems to improve modernization.
VADA has identified the following critical activities:-
Put in place sustainable technology transfer and training
which must be accessible by cost effective and user-friendly
terminals.
Update website information such that it reflects need of
users.
Coordinate capacity building and member organisation’s
interface needs to identify member organisations data
requirements.
Facilitate training and resources mobilization in member
countries related to infrastructure capacity building efforts
and train the member countries’ users to become
data/information providers.
Strengthen existing structures by construction of new
networks and engaging qualified and competent technical
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personnel from member organisations in managing VADA
network.
5.5 Goal No 3 Policy Advocacy and Engagement
Being VAT administrators in their respective countries, VADA
member organisations are also responsible for providing inputs to
the formulation of appropriate policies in order to achieve the socio-
economic objectives of the respective countries. This involves policy
advocacy – the active or inadvertent support of a particular class of
policies – with a long term objective of optimizing the contribution of
VAT in Africa’s economic and social development. In pursuit of this
Goal’s objective, VADA shall focus on the following objectives,
strategic and activities.
5.5.1 Build Policy Advocacy Capacity
Multiple solutions to multiple problems replicated to the scale
of the problem.
(a) Develop members’ capacity for policy advocacy.
(b) Commission policy related research and advocacy events
5.5.2 Policy related research and publication
(a) Adopt a Publication Strategy for the prioritized
development of a set of VAT Administration Best Practice
Guides.
(b) Ensure that products and processes are of a high quality
and meet membership needs by obtaining feedback on a
regular basis.
5.5.3 Policy engagement and collaboration
(a) Develop and communicate appropriate policy engagement
and collaboration mechanism with various stakeholders.
(b) Develop workable policy solutions by discussing range of
options and gaining feedback with stakeholders.
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5.5.4 Harmonisation of legal and practice frameworks
(a) Model VAT Agreements
(b) Model VAT Legislations
5.6 Goal No. 4 Partnership and Strategic Alliances
The Strategic Plan aims to set new profile and direction for VADA in terms
of its various Strategic Objectives which focus on VADA Vision, Mission
and Core Values. These include various capacity building initiatives in
institutional organisation, human resources and provision of technical
support. To realise this Goal, VADA must establish a strong mutual
partnership with African and Non-African professional bodies, reputed
international organisations and Africa’s economic Blocs. The principal aim
are improving knowledge on best practices, sharing experiences, expertise
and resources, including human and financial resources in implementing
VADA functions and activities. The Goal is to be achieved through the
following strategies.
5.6.1 Promote collaboration with other regional tax bodies and
institutions.
(a) Publicise VADA’s identity, role, and expertise internationally,
(b) Establish strategic partnerships with other similar Associations of
Tax Administration like ATAF, CATA, IOTA, CIAT
(c) Cultivate linkages with regional private sector institutions and tax
advice organisations.
5.6.2. Create a platform for securing special expertise
Create platform on the comparative advantages and special
expertise of the envisaged partners to support and catalyse
development of VADA functions and activities.
5.6.3 Establish linkages with multilateral and international organisations
(a) Coordinate VAT policy and administration capacity building or
other initiatives involving its members.
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6.0 IMPLEMENTING VADA’s STRATEGIC PLAN
6.1 Details of the intended results of the Plan
The following paragraphs provide details on the Strategic Plan
initiatives and activities which are necessary in order to deliver the
intended results and achieve the Goals of the Strategic Plan.
6.1.1 Capacity enhancement
VADA is entrusted with ensuring that its specific objectives
are achieved with maximum efficiency and effectiveness.
However, an assessment of its legal status, functioning of its
Secretariat and alliance display capacity enhancement needs.
The objective entails, amongst others, publicizing VADA’s
entails, amongst others, publicizing VADA’s identity, role and
expertise internationally.
6.1.2 Technical Support and Strategic Alliance
Almost all VADA member tax administrations have serious
and immediate need of technical support. VADA is entrusted
with the function of providing support for professional
advancement by providing access to information and training
on various VAT administration and management issues.
VADA should mobilise technical support resources with a
focus on development of human resources and organisational
development of its members in order to ensure effective and
efficient VAT administration in Africa.
The function also facilitates strengthening of capacity of
VADA members with regard to knowledge, skills and
experience needed to enhance the individual member’s
efforts and initiatives. The focus here is the provision of
needed information and facilitation of learning.
6.1.3 Policy advocacy and enforcement
Translation of VADA’s objectives into realized practical
actions and tangible results requires concerted efforts and
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commitments to build ownership of the institution (advocacy)
and mobilise resources. The function includes institutional
reforms that promote excellence and growth.
Advocacy and resources mobilization raise the profile of
VADA member organisations for providing inputs to the
formulation of appropriate policies of their respective
countries. The aim is to increase the involvement and
capacity of VADA member organisations for policy advocacy,
policy related research and replication and policy
engagement and collaboration.
6.1.4 Access to knowledge and technologies
VADA member administrations are constrained by poor and
unreliable access to VAT administration knowledge and skills
as well as access and use of modern ICT technologies.
VADA should facilitate access to VAT administration skills
and knowledge to its members for efficient and effective
performance. Moreover VADA should promote information
exchange and learning among its members. It should
therefore, create linkages between different tax administration
knowledge resources.
6.2 Strategic Results Indicators
Each activity provides for outcome based indicators. These
indicators define the focus of the statement and measure quantity,
quality and time. These types of indicators produce product-based
measure number of people or products realized, achieved or
produced over the time period. The indicators do not provide a
measure of the impact or outcome of the delivery therefore are
limited in their usefulness.
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A better approach is to identify the outcome of delivering or
achieving something out of the activity; thus providing an indication
of success and is also a more sensitive and dynamic approach. The
out-come based indicator answers the question:-
How would we recognise success at a particular level?
What would be the outcome that would objectively verified?
Such indicators enable the need to be verifiable and able to satisfy
conditions of quantity, quality and time. However, they also give a
measure of the impact, or outcome and of delivery/achievement.
The Strategic Plan activities have detailed numerical indicators.
These are provided as detailed objectively verifiable indicators at the
end of the Strategic Plan period.
7.0 MONITORING AND EVALUATION
7.1 Monitoring and Evaluation (M&E) Institutional framework
7.1.1 Monitoring and Evaluation (M&E) are applied to all
activities of the Strategic Plan in order to track progress
towards the targeted results and outcomes, as defined by
the Key Results Arears (KRAs) and Key Performance
Indicators (KPIs). The M&E System provides the data and
analysis for management of the activities performance
etc.
7.1.2 Each Goal of the Plan has sets of Initiatives and activities
to achieve its objectives and deliverables. The Goals and
initiatives are expected to remain valid throughout the Plan
period although they may have variable lives.
7.2 Monitoring and Evaluation (M&E) Measures
7.2.1 Strategic Initiatives
Monitoring and Evaluation of the Strategic Plan is carried out
by assessing the efficiency in execution of strategic initiatives
and testing various performance measures as per the set
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targets. The Strategic Plan performance evaluation is based
on an assessment of both the product based indicators and
outcome based indictors. The aim of M&E measures is to
report on the general performance status at any point in time
of the Plan Implementation period.
7.2.2 Performance Indicators:
Performance Indicators to be monitored include Strategic
Performance Measures, Key Performance Indicators (KPIs)
measures and Key Result Areas (KRAs) measures. These
indicators will be monitored and measured in order to
enable VADA Secretariat and member organisations
make assessment of the Strategic Plan’s Implementation
Status, achievements and impact on its objectives at any
particular point in the Plan Implementation period.
7.2.3 Strategic Performance Measures
Strategic Performance Measures address Key Result Areas
(KRAs) performance trend. The measures provide the tool
for tracking realisation status of the Plan’s Objectives and
assessment of any gaps between actual and targeted
achievements.
7.2.4 Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) measure the nature
and scope of the Plan Implementation, in terms of
efficiency and effectiveness to VADA and its impact on the
objectives.
7.3 Reporting
While the Strategic Plan implementation monitoring is a continuous
process, evaluations are conducted at agreed time intervals,
preferably once every three months (quarterly) and consolidated
reports prepared by the VADA Secretariat for members’ information
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and suggestions of interventions, where appropriate, in order to
keep the Plan implementation on course.
The VADA Secretariat will therefore create the Strategic Plan
Monitoring and Evaluation Database as a system and tool for
monitoring evaluation and reporting implementation status.
8.0 CONCLUSION
VADA’s Strategic Plan 2015 – 2017 reflects VADA’s commitment to
realization of its Mission as a viable international organization serving as a
rallying point for modernising Africa’s Value Added Tax systems and the
Mission to provide African economies and VAT Administrations with world
class technical services in support of efficient and effective VAT systems.
The Plan is based on VADA’s Core Values of Compassion, Commitment,
Excellence, Integrity and Stewardship. These Values influence and guide
VADA’s behaviour. The Strategic Plan endeavours to address real
challenges and gaps with the highest professional standards and quality as
to ensure realization of the specified results and achieve VADA objectives
with maximum satisfaction of the member VAT Administrations and other
stakeholders.
