VAT Implementation in GCC
VAT (Value Added Tax) is an indirect tax applied on the consumption of most goods and services. It is levied by VAT registered businesses which make supplies of goods and services in the course or furtherance of their business.
Although VAT will apply to most goods and services there are some likely exceptions: this includes basic food items, essential medicines and exports of goods and international services which are expected to be zero rated supplies.
The GCC (Gulf Cooperation Council) states have worked together to develop a framework for the introduction of VAT. This framework agreement contains the underlying principles of VAT laws for the six GCC countries.
It is a revolutionary step taken by the government that would impact various business verticals like manufacturing, pharma and retail to name a few. VAT is likely to be introduced across the GCC on January 1, 2018. The standard VAT rate will be 5% unless a zero rate (0%) or exemption applies.
The VAT Approach
VAT would bring about radical changes to the way business is run and the organizations should understand the VAT policy and the way it would impact their business. Proper planning must be initiated followed by roadmap creation for transition to the VAT framework.
While businesses are considering VAT implementation as a challenge, Gemini sees it as an opportunity to ensure that the transition takes place smoothly.
Business with existing ERP’s will have to be VAT compliant. There is not enough time left for Organizations to start with this approach and should enroll soon to ensure smooth transition and should not be in a state of indecisiveness.
Gemini’s role is to understand the impact of VAT by following the below approach
- Impact Assessment
- Blueprint Design
- Go-Live & Support
We at Gemini, have been serving various clients across the GCC, providing various SAP solutions. With our strong expertise on ERP applications and the GCC Taxation system, Gemini is the right partner to help you out in this initiative.
VAT Implementation is a short mile away and companies are not clear about the approach pertaining to the implementation for their SAP systems. Gemini is out here to clear this uncertainty to guide you through this transition process in an efficient manner.
Our SAP Expertise team, having years of experience not only possess the right technical/ functional skills, but also have a sound knowledge of the GCC taxation system.
- Gemini has been delivering solutions synchronized to customer’s business for several years now.
- We have a team of Experts who specialize not only on the technical aspects of SAP but also have a sound understanding of the taxation system.
With Gemini’s integrated strategy mix, we are a capable partner in your company’s transition to the VAT framework. Our unique combination of business and technical capabilities have made Gemini the leading company, in comparison to our competitors.
Contact us at firstname.lastname@example.org.