The Value-Added Tax (VAT): Effects on Saudi Economy in The Light of The Saudi Vision 2030

Authors

  • Ghadeer Amer Albishi  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.
  • Basma Alghamdi  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.
  • Lama AlSubaie  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.
  • Modhi Almohareb  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.
  • Hadeel Al-Hamoudi  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.
  • Haifaa ALakeel  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.
  • Muneerah Alshabanah  College of Applied Studies and Community Service, Imam Abdurrahman Bin Faisal University, Dammam, Saudi Arabia.

DOI:

https://doi.org//10.32628/IJSRST1207229

Keywords:

Value-Added Tax (VAT), Saudi Vision 2030, Fiscal Balance and Investment.

Abstract

The aim of this study is to know the impact of Value-added Tax imposition on Saudi economy in light of the Saudi Vision 2030, we assumed that the Value-added Tax leads to an increase in general revenues, and it affects the purchasing power, we also assumed that the provision of subsidies lowers the tax burden. This study follows the descriptive methodology in the literature review and the analytical-inductive methodology in collecting data to examine the assumptions by using a questionnaire. This research generally discussed taxes by reviewing its definitions, characteristics, and objectives, it also mentioned the technical regulations of taxation and analyzed the questionnaire results and estimated the Value-added tax revenues contribution in general revenues. The main conclusions were that the Value-added tax imposition leads to an increase in prices which in turn decreases the purchasing power, also the revenues from the Value-added Tax contributed in increasing general revenues, and the most important recommendations were to establish rules on commercial institutions to prevent prices manipulation after the tax is implemented. In addition, this research recommended directing Value-added tax revenues for infrastructure spending and improving government services.

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International Journal of Scientific Research in Science and Technology

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Published

2020-04-30

Issue

Volume 7, Issue 2, March-April-2020

Section

Research Articles

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How to Cite

[1]
Ghadeer Amer Albishi, Basma Alghamdi, Lama AlSubaie, Modhi Almohareb, Hadeel Al-Hamoudi, Haifaa ALakeel, Muneerah Alshabanah, " The Value-Added Tax (VAT): Effects on Saudi Economy in The Light of The Saudi Vision 2030, International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011, Volume 7, Issue 2, pp.201-214, March-April-2020. Available at doi : https://doi.org/10.32628/IJSRST1207229