Abstract

The study aims to identify the impact of value-added tax (VAT) on Saudi banks, through measuring the impact of changes in the banks before and after the implementation of Value Added Tax (VAT), in all of total assets, total liabilities, customer deposits, retained earnings, total operating income, total operating expenses and net operating income. The study targeted the fourth quarter of 2017 (before the implementation of VAT), and the first and second quarters of 2018 (after the implementation of VAT). The study found that there is a slight decline in total assets, total liabilities, customer deposits and current accounts, in addition to a significant decline in retained earnings, total operating expenses after the implementation of VAT. On the other hand, the study found that there is a slight increase in the total income of operations and a significant increase in net operating income after the implementation of value-added tax. Moreover, the study found that there are no statistically significant differences between total assets, total liabilities, customer deposits, current accounts, total operating income, total operating expenses, net operating income before and after the implementation of value-added tax; while there are statistically significant differences between retained profits before and after VAT.

Key words: Commercial banks, value-added tax (VAT).