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Readiness Plan
Sandeep Mahindra
What is VAT for GCC ?
VAT is an indirect tax applied on the consumption of
most goods and services. VAT is levied by VAT registered
businesses that supply goods and services in the course
or furtherance of their business. VAT is also applicable on
the import of goods.
Procurement of
3
India UAE Services
VAT
Africa
Import VAT
Export
Supplier 1 ABC 4 Customer
Import of Goods
Customs duty VAT 0%
Customer
2
Value AED 1000 Export AED 2000
Local purchases +Output VAT@0% AED 0
+ Customs Duty@5% AED 50
AED 52.5
VAT Total AED 2000
+ Import VAT@5%
Total AED 1102.5
Cost
Input VAT -Input VAT + Input credit under RCM (25 + 5 + 52.5) 82.5 (B)
Exempt
Service Provider 1 ABC LLC Customer
Import of Sale
services
VAT *
No credit allowed
Cash or Bank or Name of Customer Account Dr. (Value of Purchase + VAT output)
Sale Account Cr. (Value of Sale)
VAT Output Account Cr. (VAT on Sale)
Month end/ Period End Amount
Output VAT XXX (A)
Particulars Amount
VAT Output Account Dr. YYY
VAT Input Account Cr. YYY
Option 2 | SAP VAT TAAS Solution and Sell our Focus Services
Patch upgrade and VAT Implementation Services
VAT Assessment | VAT Readiness | Pre-Configuration | Configuration | Test & Run
Option 3 | ERP VAT On-Premise Solution and Sell our Focus Services
Patch upgrade and VAT Implementation Services
VAT Assessment | VAT Readiness | Pre-Configuration | Configuration | Test & Run
1 Taxable statuses
3 Place of supply?
4 Is there an Exemption?
5 Who is liable?
GCC VAT Engine
Treatment &
Single online Return boxes
VAT Determine VAT
Expert Web Expert Web
query Invoice VAT treatment Code Customer
Facts Maps Tax code
addresses VAT code
good/ mapped
Re-coded/
Type
etc
Real time
VAT legislation Real time
ERP Interface Interface ERP
VAT
Updates Code
lookup
Offline map of
customer tax codes
to key invoice
legislation
& facts
Fact
Fact 1
2
Fact
3
E
X
T Reconciliations
R
Reporting ISYX VAT
Oracle A
C INBOX Check Reporting
Audited
manual
T
O Validation Adjustments
R
XML
Fixed file PDFs
Real time
XLS submission
Direct
Interface Warnings
Data collection
Upload
file
VAT, listing & Automatic
Intrastat Errors
Manual data checks
PDF filing
ISYX
VAT Reporting
Exception
Oversight Review
reports
Correct
Approve Reconciliation
Adjustment
We are actively engaged with our partner network & tax authorities
Government agencies
Assessment Implementation QA Audit
Partner Network