Impact of VAT on economic development of the country

Taxes are government-funded revenues that are used to cover part of public service costs. One of the taxes that has spread across countries over the twentieth century is value added tax. Value-added tax as the new tax base is one of the most effective sources of government financing in the current economy, which has a major role in sustainable economic development and government revenue growth. Value-added tax is a multi-step tax that takes place in the various stages of the production chain-distribution, based on the percentage of value added of the goods produced or the services provided. Since value added tax increases the consumption of households, it can be expected that consumer's behavior patterns will be affected. Value-added tax creates vast tax and economic benefits, so the country's tax affairs organization must create the necessary platforms for its efficient and effective implementation in order to provide part of the tax revenue of the country.