أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
it is consumer tax and is ultimately collected from the consumer. It is implemented to avoid cascading effect or double taxation
The Value Added Tax (VAT) is implemented according to the nature of business. It is a consumer tax ultimate or entierly collected from consumers.
It seems to be fine that, the chargable is 5%(Fixed) for all sectors(Business Kinds).
Vat Chargable = ( Sales % - Puchase %), ex. a coffee shop sells a coffee for SR 10 it should collect SR 0.5 as VAT, and the coffee beans purchased for SR 5 that means on purchase it paid SR 0.25 as VAT.
So the payable VAT is (0.5 - 0.25)= SR 0.25
