The Impact of the Sales Tax Calculation Methods for JT Companies on the General Revenues: Comparative Analytic Study

Abstract

This study aimed to examine the service sales tax calculating methods of the Jordanian communication companies and their impact on the general revenues, trying to compare them with other companies in other Arabian countries in order to make sure that all these services undergo sales tax and that there is no tax evasion in Jordanian communication companies. The study answered several questions and it found that there is a default in accounting communication services sales tax in Jordan because of the accounting methods being followed , which led to tax evasion on the free services of these companies. Although the services of these companies increased in the years between 2010 - 2012 up to 78 %, the sales tax revenues decreased within the same period down to 7 %. The study recommended that the Jordanian tax legislations have to be amended to be consistent with the direct method of calculating the sales tax of the Jordanian communication companies.