it is time to hurry with vat preparations across gcc
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

It is time to hurry with VAT preparations across GCC

Egypt Today, egypt today

Egypt Today, egypt today It is time to hurry with VAT preparations across GCC

Aarti Mohan and Si Mohammad Said. Experts warn it may not be wise for firms to wait till the
DUBAI - Arab Today

The UAE has reaffirmed its commitment to the implementation of a value added tax (VAT) in the country with the Federal National Council (FNC) approving the draft law last week and the final law is waiting for the presidential approval.

With the imminent VAT implementation, tax practitioners, technology leaders and government departments are calling on businesses to prepare themselves for the new tax regime in the country.

“Introduction of VAT is new to the UAE and the GCC states. It is important for companies to make preparations in terms of gearing up the accounting systems to integrate VAT. With just about 9 months to go for actual implementation, it is imperative for companies to address the VAT related concerns,” said Aarti Mohan, ERP & EPP Business Development & Strategy Leader, Oracle.

In preparation for the GCC-wide implementation of VAT, each member state of the GCC will establish their own separate national legislation on VAT and as such the detailed compliance requirements and set of rules will be outlined in each respective legislation.

Experts warn that it may not be a wise idea for companies to wait for the final legislation on VAT to prepare themselves for implementation. “Although VAT is new in the GCC, it has been implemented across a number of countries in the world. What companies need to do on an urgent basis is to prepare their accounting systems to integrate VAT in it,” said Si-Mohammad Said, regional head of marketing, application at Oracle

In preparation for integrating VAT, companies will require to assess the capabilities of existing IT systems and re-configure it in order to generate VAT compliant outputs. In many cases, significant changes will be required to IT platforms and present workflows and processes.

Modify systems

Companies that have enterprise resource planning (ERP) solutions, it is mostly re-configuring the system to introduce VAT into the software. With a number of companies, using different types of software solutions and accounting packages, it will be important to check and test the system capabilities much ahead of the deadlines.

As part of the preparations, businesses will need to modify their systems to incorporate VAT right from their point of sale terminals, invoice and accounting systems, information technology systems and management reporting systems.

“Modifications to ERP solutions and accounting systems to incorporate VAT can be done even without the full details of the VAT law. With the deadline fast approaching companies need to speed up preparations,” added Said.

A recent study by EY [formerly Ernst & Young] based on a GCC-wide survey showed that more than half of companies in the GCC have not started any preparations for the implementation of value added tax (VAT). Participants at a recent EY webcasts on GCC VAT, 50 per cent of the businesses surveyed reported that they have not started any preparations. With less than 10 months to go before the GCC VAT is implemented, 51 per cent of businesses reported that VAT compliance will be their main area of focus, while just 8 per cent of respondents said they would be concerned about procurement considerations, and 10 per cent reported they will look to address customer and vendor pricing as a priority.

Education and training

From the survey respondents only 13 per cent of businesses responded that they considered education and training of primary importance during VAT preparations.

“Global experience has shown that VAT training and education is fundamental to ensure successful VAT implementation. Business focus should be primarily on system and business process readiness, communication, staff training, and sourcing VAT knowledge internally or externally. Compliance with the requirements of the VAT law will follow if these areas are properly addressed,” said David Stevens, EY’s VAT Implementation Leader.

Business systems, from fully integrated ERP systems to stand-alone finance packages will often include standard VAT functionality. However, this is likely to require modification to capture specific GCC regulations. For larger organisations, configuring VAT in their ERP and finance systems will be resource intensive, potentially complex and expensive.

While getting ready within a tight schedule experts expect financial advisers, system specialists and solution providers are also likely to face resource issues, while attempting to support their customer base across the GCC region.

“It is true that incorporating VAT will have an impact the entire business systems, but as part of getting ready for the introduction, it is possible for companies to simulate a fully functional VAT environment without causing interruptions to current business requirements. We think companies should start testing and simulating VAT implementation,” said Mohan

source : gulfnews

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

it is time to hurry with vat preparations across gcc it is time to hurry with vat preparations across gcc



GMT 08:31 2018 Monday ,22 January

West's 'Russiaphobia' worse than

GMT 12:40 2017 Thursday ,06 April

As streaming booms, songs getting faster

GMT 01:25 2011 Friday ,25 November

Giant volcanoes in Chile\'s wild Atacama

GMT 01:55 2017 Friday ,21 April

Unveils giant restored statue of Ramses II

GMT 13:53 2012 Monday ,16 January

Will Saleh’s men compromise his exit strategy?

GMT 17:38 2011 Monday ,09 May

10 of the best places for summer holidays

GMT 13:36 2015 Tuesday ,25 August

Lion kills guide in Zimbabwe park where Cecil lived

GMT 08:24 2016 Tuesday ,15 November

Berlin wild charms make it first choice

GMT 10:45 2012 Thursday ,19 July

ProSiebenSat.1 plans online TV channel

GMT 06:05 2012 Tuesday ,14 August

Memory, learning power unaffected

GMT 13:26 2017 Tuesday ,25 July

Nasr: lure dlrs 30 bn in investments in SCZone

GMT 13:58 2012 Tuesday ,07 February

Upstaged Bastakiya fights to regain place in Dubai

GMT 07:37 2011 Thursday ,28 July

White by Wang Launches New Collections

GMT 10:37 2017 Sunday ,24 December

Zimbabwe's ex-army chief named ruling party VP

GMT 07:27 2012 Sunday ,18 March

Bar fly: Up on tenth and more

GMT 05:22 2011 Tuesday ,06 December

Syria and the Arab deadline

GMT 22:56 2016 Friday ,29 July

Car bomb kills Libyan soldier in Benghazi

GMT 01:51 2015 Monday ,20 July

Police in Dubai celebrate Eid in typical style

GMT 13:31 2017 Saturday ,18 November

Leaders congratulate President of Panama on national day

GMT 23:29 2016 Sunday ,18 December

DEWA receives emission reduction certificate

GMT 03:23 2016 Tuesday ,27 December

UAE forms Council for Climate Change and Environment

GMT 07:09 2012 Wednesday ,25 April

Mad cow disease found in California

GMT 14:10 2015 Friday ,07 August

Celebrating 30 years of the Porsche 959

GMT 11:05 2012 Saturday ,07 April

CEO slams taking PressTV off-air in Germany
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday