This study assessed the effectiveness of the application of the principles of service quality in tax administration. The methods and processes employed to carry out this study include survey methods. Interview schedule was also used as the instrument to collect data from both the tax payers and the manager of the VAT office. A total of 100 tax payers were sampled for the study. Descriptive study design was used. Data were discussed using percentages, aggregates, averages, tables and figures to create a better understanding. The study found that the VAT service is decentralizing its operations to make its services more accessible to the clients. Further, it found that employees perceive the tax system as being fair. It was however disclosed that the VAT service does not have offices in all the Districts in Ghana. It was therefore suggested that management of the VAT service subsume their decentralized operations into the activities of the District Assemblies in districts they do not have offices. Additionally, it was recommended that government should cede more resources and make it available to the VAT service to establish more offices at the District level.