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Since ACC is concerned with improving the skills of students and their knwoledge and updating them with the economic reforms done by the Kingdome of Saudi Arabia, the entrepreneurship club organized a workshop entitled –the economic effects of VAT in Saudi Arabia on 10/3/1441 AH.
The discussion was run by Mr/Muhammad Faleh Al-Qahatani, a student in ACC, level four, department of accounting, supervised by Dr. Magdi Al-melegi, assistant Professor at the business administration department. The discussion was attended by a large group of students from marketing and accounting programs.
The session provides a definition of VAT and the articles and commodities included in such tax and those which are exempted from it. In addition, it tackles the legal punishments imposed on the establishments violating such a system of taxation.
Mr. Al-Qahatani indicated that VAT is an indirect taxation which is to be imposed on all articles and services which are sold and purchased from some trading establishments, with few exceptions. VAT is applied in 160 countries across the world. This tax is imposed on each separate stage of supply chain starting from production, distribution and final marketing of the article.
At the end of the session, Mr. Al-qahatani has answered all the questions addressed by the students , the most important of which is about the objectives of such taxes as he stated that it helps diversify the sources of incomes and increase the government revenues since it represents a sustainable source of income which support the ambitious program of the national transformation including the investment in the economic development and public services.