scholarly journals THE ECONOMIC AND SOCIAL IMPACT OF THE ADOPTION OF VALUE-ADDED TAX IN SAUDI ARABIA

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Adel Bogari
Keyword(s):  
Saudi Arabia ◽  
Social Impact ◽  
Value Added ◽  
Tax Law ◽  
Value Added Tax ◽  
Social Challenges ◽  
Positive Effects ◽  
Efficiency And Effectiveness ◽  
Private And Public ◽  
Social Side

The purpose of this study is to determine the economic and social effects of the adoption of value-added tax in the Kingdom of Saudi Arabia. To achieve this goal, a descriptive and an analytical approach was used. We examine a sample of (287) Saudi nationals working in the private and public sectors. Our methodology used the direct questionnaire delivery and receipt method. To process our data and test our research hypotheses, we used SPSS software. The results indicate that the implementation of the value-added tax increases the country’s financial resources. However, such an initiative has a negative social impact and faces many challenges. Bearing on these results, we recommend the need to upgrade the quality of the implementation of the on value-added tax law through improving the efficiency and effectiveness of employees in the General Authority of Zakat & Tax, and simplifying tax procedures until the positive effects on the economic and social side rebound. The researcher recommends the need to overcome economic challenges through the commitment of wholesalers and retailers to release tax invoices for all their dealings, and to organize their businesses through electronic invoices. The researcher recommends the need to overcome the social challenges that face the implementation of the value-added tax law, by promoting trust between the community and the General Authority of Zakat & Tax and activating the role of the Zakat and Tax Authority in spreading awareness and tax culture to the community.

scholarly journals A Blockchain-based Value Added Tax (VAT) System: Saudi Arabia as a Use-Case

2019 ◽  
Vol 10 (5) ◽  
Author(s):  
Ahmad Alkhodre ◽  
Toqeer Ali ◽  
Salman Jan ◽  
Yazed Alsaawy ◽  
Shah Khusro ◽  
...  
Keyword(s):  
Saudi Arabia ◽  
Value Added ◽  
Use Case ◽  
Value Added Tax

scholarly journals Comparison of Amendments to the Value Added Tax Law between Indonesia and Malaysia to Regulate Murabaha Transactions

2018 ◽  
Vol 7 (3.25) ◽  
pp. 114
Author(s):  
Thesa Adi Purwanto ◽  
. .
Keyword(s):  
Islamic Law ◽  
Value Added ◽  
Secondary Data ◽  
Islamic Finance ◽  
Tax Law ◽  
Islamic Banking ◽  
Value Added Tax ◽  
Literature Study ◽  
The Subject ◽  
The Government

Islamic banking in their activity base on Islamic principles that is agreement regulation on Islamic Law between Bank and others to saving and or financing an activity or business which suit Islamic role. There are several forms of financing, such as financing on sharing profit principle (mudharabah), financing on participation principle (musyarakah), transaction goods principle which get profit (murabaha), financing capital goods on rent principle without choice (ijarah), or with transfer authority over the rent goods from bank to others (ijarah wa iqtina). Furthermore, development of Islamic banking either in Indonesia or Malaysia must be followed with new law and regulation from their government, especially for rules on taxation over transaction on Islamic banking. This is critical because there are different interpretation and argumentation between practitioners of Islamic banking and the government about the subject of Value Added Tax on murabaha transaction. This research used a qualitative approach, using literature study, which emphasizes books as an object and field study with collecting data by interviewing and also using secondary data. As a result, both Indonesia and Malaysia has undergone essential steps to provide Islamic finance with appropriate banking and tax regulations that have succeeded in supporting the Islamic financial system.  

Reform der kommunalen Finanzbeziehungen: Kommunale Umsatzsteuerbeteiligung unter Gewerbesteuer-Wettbewerbselementen / Reform of Local Fiscal Relationships: Communal Share of German Value-added Tax with Elements of Interregional Business Tax Competition

2007 ◽  
Vol 227 (4) ◽  
Author(s):  
Tony Mudrack
Keyword(s):  
Value Added ◽  
Tax Law ◽  
Value Added Tax ◽  
Economic Cycle ◽  
Local Authorities ◽  
Tax Revenues ◽  
Public Investments ◽  
Business Tax ◽  
Economic Boom ◽  
Continuous Problem

SummaryThe Business tax in Germany (German: Gewerbesteuer) has remained a continuous problem in spite of the recent economic boom. There has been a dramatic resurgence of populist voices calling for the abolition of the German Business tax.Regardless of these debates, the structural deficits of the business tax are undeniable. As one of the main sources of tax revenues for German local authority it is subject to tremendous economic cycle volatility, because it is widely perceived as being a tax on profit. A further problem is that many other problems concerning tax-based deficiencies within the German Business tax law are arising. Consequently, the number of business enterprises actually paying the business tax is negligible. A serious consequence of all these deficits is that the allocation of public investments becomes extremely hindered.For this reason a completely unique plan for reforming the recent local fiscal relationships is presented in this paper. It explicitly argues for the preservation of the German Business tax while nevertheless sustainable stabilising the revenues of German local authorities by means of allowing them a share of the German Value-added tax (German: Umsatzsteuer). This share is distributed to local authorities by their individual share of local revenues of German business tax and total tax revenues of Business taxation.

scholarly journals PROBLEMATIC ASPECTS OF CALCULATION AND PAYMENT OF VALUE ADDED TAX BY TOURISM INDUSTRY OPERATORS

2018 ◽  
pp. 31-38
Author(s):  
Yaroslava Kril ◽  
Svitlana Blahodyr ◽  
Keyword(s):  
Value Added ◽  
Tourism Industry ◽  
Tax Law ◽  
Practical Relevance ◽  
Value Added Tax ◽  
Travel Agents ◽  
The Core ◽  
Business Entities ◽  
Performance Results ◽  
Theoretical Foundations

The purpose of this contribution is to analyse the theoretical foundations covered in the normative legal acts of Ukraine and practical professional consultations of the departments of the National Fiscal Service of Ukraine with respect the specifics of the calculation and payment of value added tax by business entities operating in the tourism industry. Methodology: The methodological underpinnings of the study consisted in synthesising and analysing the material collected by the authors in the area of taxation in the tourism industry. The method of comparison and generalization was used to validate the key principles of the calculation of value added tax for tourism market operators. Results: This article covers the core aspects of the special regimen of calculation of value added tax as established by tax law and applicable to tourist operators and travel agents. Scientific novelty consists in validating the necessity of optimising the performance results of tourism businesses through the implementation of special norms, privileges and simplified tax regimens. Practical relevance: The conducted research is of practical relevance, as it contributes to the correct interpretation of the provisions of tax law in relation to the value added tax charged in the tourism industry, which, in turn, prevents incidence of non-compliance with tax law across the industry.

scholarly journals VAT application in travel services pursuant to the Czech and EU legislations and a proposal for amendments in the Czech value-added tax law

2010 ◽  
Vol 58 (6) ◽  
pp. 345-354 ◽  
Author(s):  
Milena Otavová ◽  
Veronika Sobotková
Keyword(s):  
European Union ◽  
Value Added ◽  
Tax Law ◽  
The European Union ◽  
Value Added Tax ◽  
Common System ◽  
Eu Directive ◽  
Council Directive ◽  
Travel Services ◽  
Definition Of

The domain of value-added tax has been already fully harmonized. Its regulation dwells on the Council Directive 2006/112/EC on the common system of value-added tax, and all member countries of the European Union are obliged to provide for the implementation of this Directive into their national legislations similarly as the Czech Republic, which entered the European Union on 1 May 2004. The Act no. 235/2004 Coll. on the value-added tax as amended (hereinafter „value-added tax law“) should be therefore in line with the Directive. In reality however, some issues in the VAT law have not been fully harmonized yet. One of these issues is for example the application of a special routine for travel services according to §89 of the VAT law, which is in essential contradiction with the Directive in question, the controversial point being definition of the person of customer whom the Directive understands in a different way than the VAT law. Thus, the characterization of the problem based on the Czech and EU legislations with respect to jurisdiction of the Court of Justice of the European Community forms a framework of the paper. Based on a comparative analysis of the application of special and ordinary routines in providing travel services to the customer by the taxpayer, tax incidence in his assessment base is determined. At the same time, the paper also includes a proposal for the change of the definition of customer in the VAT law so that the application of the given routine is fully in line with the EU Directive.

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