The Impacts of VAT on the Retail Supply Chains of Kashtban Trading Company in Dubai

Abstract:
This paper examines the impact of Value-Added Tax (VAT) implementation on Kashtban Trading Company’s retail supply chains and clothing industry operations in Dubai. Using a quantitative survey design, data were collected through structured questionnaires and analyzed using Structural Equation Modeling – Partial Least Squares (SEM-PLS). The findings reveal significant positive effects of VAT on operational processes, financial performance, consumer behavior, and market positioning. VAT compliance was found to enhance operational efficiency and transparency while contributing to improved financial outcomes, particularly in the clothing sector. Consumer purchasing patterns showed moderate sensitivity to VAT-induced pricing adjustments, highlighting the need for adaptive strategies to maintain market competitiveness. The study provides actionable insights into VAT’s multifaceted implications, demonstrating how regulatory compliance can drive organizational improvement when aligned with strategic objectives. These findings contribute to the literature by offering an organization-specific perspective on VAT impacts in dynamic market contexts.