The objective of the study is to assess VAT administration practice and revenue performance with respect to the challenge and opportunity in the case of lager tax payers' branch office at Ethiopia Revenue and Customs Authority. The paper further assesses to showing the share of VAT income in related to total government revenue. The study used both qualitative and quantitative research methods to collect and analyze both primary and secondary data. The information gathered from LTO employee's and taxpayers attitude towards VAT administration problems, compliance level of the taxpayers to VAT rule and regulation and tax authority potential to administer VAT. Questionnaires were distributed for fifty employees of the branch and to analyze the data, statistical package for social science (SPSS) soft ware version 20 was used. Further, secondary data was collected to measure the VAT revenue performance of the authority. Finally, the concerned body may take these findings worthwhile for corrective action as the researcher put some helpful recommendations. ukryj opis