أثر تطبيق ضريبة القيمة المضافة على ربحية و تنافسية البنوك السعودية

Abstract EN

The VAT applied in the Kingdom is an indirect tax and is levied on services and goods at a rate of only 5% not on income.

Anyone who has purchased a taxable product and wants to return the item has the right to recover the value of the item with the tax.

The Kingdom's revenues from VAT during 2018 amounted to 48 billion riyals, and will clearly affect the Kingdom's economy, and increase the volume of non-oil revenues.

The study dealt with three topics, the first of which dealt with the definition of VAT and the goods and services subject to VAT.

The second topic dealt with the services subject to VAT and the services exempted from VAT in the Saudi banking sector.

The third topic dealt with: a detailed analysis of the impact of the application of VAT on the profitability of Saudi banks during 2018.

The study concluded with a number of conclusions and recommendations, the most important of which are the success of the policy adopted by the Saudi government represented by the General Authority for Zakat and Income to exempt the banking sector services based on interest and the margin implicit from the value added tax, where this exemption maintained the profitability and competitiveness of Saudi banks.

The profits of Saudi banks in 2018 were not affected by the implementation of the VAT.

This was demonstrated by the rise of most of these 12 banks by a percentage ranging from 3 to 25% compared to their profits in 2017, and is considered the year 2018 App for VAT.

The necessity of maintaining the prudent policy adopted by the Saudi government represented by the General Authority for Zakat and Income, which exempted the main financial services from VAT, as this exemption reflected positively on the development of the banking sector in Saudi Arabia and increasing its competitiveness and its current ability to face any negative effects On macroeconomics.