Examining the Customers’ Perception Toward the Implementation of Value-added Tax in Saudi Arabia: A Financial, Economic, and Social Perspectives in Sustainable Economic Development

Value Added Tax is widely used and prominent since it generates significant economic revenue and is very simple to administer. Consumers who purchase various goods and services are subject to a standard consumption tax called VAT, which is gradually collected. Economic growth is necessary for a country to be sustainable in the long run. VAT has been recognized as an essential global tax instrument that fosters economic growth. The study examines the customers’ perception of financial, economic, and social perspectives of VAT in sustainable economic development. This study employed a mixed-methods design, incorporating both quantitative and qualitative methodologies. The data was obtained from 315 respondents in Saudi Arabia via a structured, self-administered questionnaire. Descriptive analysis, correlation analysis, reliability analysis, regression analysis, and ANOVA were employed to analyze the data in SPSS. The study results showed that all factors substantially impacted customers’ perception, and customers perceive that the revenue generated from VAT significantly contributes to a country’s financial, social and economic development. The advice presented would be helpful to scholars and policymakers who are examining the implications of VAT and how to improve compliance.