[The Effects of VAT Increase on Consumers]

By

Acknowledgement

I would first like to express my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

Signature:

Dated:

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

Aim1

Objectives1

Preface1

Literature Review3

CHAPTER: LITERATURE REVIEW4

VAT increase in the consumer division5

How value-added tax affects7

What is the current rate of VAT in the UK?8

Compared to rates in the UK to other European countries?8

What kind of impact higher taxes & more value added?9

Justification10

Criticism10

REFERENCES14

APPENDICES16

Aim

To critically review the literature and present a balance on the Value Added Tax and its positive and negative impacts on the consumers as well as the public companies in the context of finance and accounts.

Objectives

To identify and investigate the positive implications of the act on public companies in an accounting and financial reporting context

To identify and investigate the negative implication of the act on public companies, in an accounting and financial reporting context

To discuss how successful or unsuccessful the act has been by comparing/contrasting the positive and negative implications



Preface

The effects of this measure began to be reflected even before they go into effect the decree to legalize the decision after the announcement when the population began to make purchases for fear of nerve the next price increase caused by the VAT increase, as was the case of appliances and white goods whose sales increased by up to 40% after the announcement of the measure, in some stores even ran out of items, which also causes effects on the inventory of the stores which become more difficult to replace after an outbreak of such a purchase.

Moreover, despite some staple items are exempt from this tax, such as: milk, precooked flour, rice, pasta, coffee, white bread, chicken, beef, tuna and sardines natural presentation to name a few, there are others who are subject to the VAT increase as in the case of cereals, soft drinks chocolaty, cleaning and personal care, as well as cable television services, restaurants, cinema and other consumer goods such as clothing and footwear.

These effects were discussed by some economists before going into effect this decree as was the case Ochoa, who stated: "the consequences of the VAT increase will pay for the people when you need to cancel more for goods or services.", So with a very similar position to pronounce the economist who said that the new rate of value added tax, rising inflation would be represented by 4% in April alone, taking into account the rising prices of consumer goods or services.

Another effect was reflected in the small traders who were not prepared for this change, who failed to adapt their machines tax schedule.

Literature Review

In order to meet the aim of presenting a balanced argument ...