Let’s learn about VAT!


Today, we’re going to dive into a world that might sound a bit tricky at first but is actually pretty interesting once you get to know it. We’re going to talk about something called VAT, and it’s something that affects many things around us, even here in Saudi Arabia!

So, what is VAT?

Well, let’s break it down nice and easy.

VAT stands for Value Added Tax. Now, don’t let those big words scare you!

Think of it this way: Imagine you have a delicious batch of cookies. You made those cookies with flour, sugar, chocolate chips, and lots of love, right? Now, let’s say you want to sell those cookies to your friends.

When you sell those cookies, you might want to make a little bit of money to buy more ingredients for your next batch. That’s where VAT comes in. It’s like a little bit of money that gets added to the price of things when they’re sold. So, when your friends buy your cookies, they pay a bit extra, and that extra bit goes to the government.

Now, why does the government need that extra bit of money? Well, just like you need money to buy more ingredients for your cookies, the government needs money to do lots of things for our country. They use it to build roads, schools, and lots of other important stuff that helps everyone in Saudi Arabia.

VAT helps make sure that everyone pays a fair share when they buy things. Whether it’s buying toys, clothes, or even a new game for your PlayStation, there’s a little bit of VAT included (15%) in the price.

But here’s the cool part: Not everything has VAT! Some things, like basic food items and certain medicines, don’t have VAT added to them. That’s because the government wants to make sure that everyone can afford the things they need to live happy and healthy lives.

So, next time you’re out shopping with your family and you see that price tag with a little extra bit added to it, remember that’s VAT at work! It’s all part of how our country keeps running smoothly and taking care of everyone.

And there you have it, a simple guide to VAT for young kids in Saudi Arabia. Keep being curious, keep asking questions, and keep learning about the world around you! Who knows, maybe one day you’ll be the ones helping make decisions about VAT and other important things in our country.

© FataFeat 2023