The role of value-added tax in achieving economic development.

Value Added Tax (VAT) is considered a modern tax that has gained increasing interest recently, as it is a major source of income in many countries around the world. It represents a consumption tax because the final consumer bears its burden, although the producer, importer, or distributor is the one who collects it. This tax differs from sales tax in that sales tax is imposed at one stage of the product's life when sold and delivered to the final consumer, whereas VAT is applied at every stage of production that adds value to the product, whether goods or services. Therefore, VAT has become one of the topics worthy of interest, especially in the Kingdom of Saudi Arabia. As one of the main sources of financing in the economies of many countries, whose clear role in covering the needs of numerous large projects cannot be ignored, as evident in Germany, France, and Spain, the contribution of that tax to the total revenues of many countries has exceeded 50% compared to other financing sources. It is considered a primary source of funding following gas and oil, contributing to shaping the financial policies of countries. The importance of value-added tax is increasing due to its characteristics of neutrality and continuous collection without interruption during specific periods in the fiscal year, enabling it to help keep the economy running smoothly, as well as its role in creating a strong incentive for exports to foreign countries, achieving a state of continuous balance between saving and consumption.