THE IMPACT OF IMPLEMENTING VALUE ADDED TAX ON THE PRICES OF BANKING SERVICES IN SAUDI BANKS - "AN ANALYTICAL AND APPLIED STUDY"

Abstract The study aimed to identify the impact of implementing the Value Added Tax (VAT) on the prices of banking services in Saudi banks. The study relied on descriptive analytical, inductive, and historical methodologies. A questionnaire was used as the primary source for data collection. The study reached several key findings, including that the implementation of VAT leads to an increase in operating costs and, subsequently, an increase in overall costs in Saudi banks. Additionally, Saudi banks adopted strategies such as offering discounts on banking service fees, improving service efficiency to create customer loyalty, and mitigating the impact of VAT on customers. The study also presented several recommendations, the most important of which include the need for expansion and diversification of investments to enhance operational efficiency and reduce the impact of VAT on overall costs, as well as the necessity for transparent disclosure regarding the effect of VAT on the prices of banking services for customers.