The Impact of Accounting Disclosure under the Application of Value Added Tax on the Revenues of the Kingdom of Saudi Arabia

Abstract

The study aims to shed light on the impact of accounting disclosure in light of the application of the value-added tax on revenues in the Kingdom of Saudi Arabia, and to cover the public in the country, as well as focusing on the impact of accounting disclosure in the financial statements, financial reports, and tax returns submitted to the tax authorities, by addressing The concept of accounting disclosure and its importance, addressing the types of taxes in the Kingdom of Saudi Arabia and the value-added tax in particular, its disclosure in the financial statements, its importance in the Kingdom of Saudi Arabia, the contribution of the value-added tax to the revenues of the Kingdom of Saudi Arabia, and covering the state’s expenses in its various bodies. And its organizations. The problem of the study was that the failure to apply accounting disclosure for companies and institutions when preparing the financial statements and presenting the financial reports submitted to the tax authorities, in light of the application of the value-added tax, negatively affects the state’s revenues. The study reached several results, the most important of which is that the accounting disclosure of the financial statements under the financial accounting system derived from international accounting standards is of greater importance than the accounting information in these financial statements, and that the value-added tax in the Kingdom of Saudi Arabia has an important role in supporting the local economy and generating revenues. The study recommended the need to oblige companies and institutions to fully and adequately implement accounting disclosure policies for financial statements in a clear and appropriate manner, which gives those statements credibility and transparency before the users and beneficiaries of those financial statements, and the need to enhance communication. Between the Zakat, Income and Customs Authority and between taxpayers and customers of various categories, through identifying opportunities for development and improvement.