The Effect of Value-added Tax on the Retail and Wholesale Sector and Consumer Behavior in Kingdom of Saudi Arabia (Exploratory Case Study)

Abstract

Basically, this study explores the effect of value-added tax on the Retail and Wholesale sector and consumer behavior in the Kingdom of Saudi Arabia. Imposing the value-added tax system on some goods and services is considered one of the most important issues that affected the Saudi society to classify it as a consumer society. It is expected that this added tax on sales in the market will have an impact on investment in the national economy. The researcher relied on the use of the descriptive analytical method and found that the most appropriate tool to achieve the objectives of this study is the “questionnaire”. While explaining the effects of value-added tax on the Kingdom of Saudi Arabia, the study methodology is based on valid data and analysis. All the descriptive, analytical and statistical research studies and the survey tool show that value-added tax has an effect on the economy of the Kingdom of Saudi Arabia. It is expected that value-added tax will be beneficial for Retail and Wholesale sector and change the consumer behavior when the efficiency and performance of the tax department are improved. It is recommended improving the individual income before implementing value-added tax. For implementation of value-added tax, individuals need to be aware about it through social media or public campaigns.