The Governments of the Gulf Cooperation Council (GCC) - Bahrain, Kuwait, Oman, Qatar (status unknown due to GCC politics/friction), Saudi Arabia and the United Arab Emirates that make up GCC - are committed to form a common framework for the introduction of value added tax (VAT) in the region. In order to achieve conformity within the GCC, it is anticipated that the six member states will all aim for implementation of VAT during the period commencing 1 January 2018 or by the end of 2018.
VAT as a process will affect many aspects of businesses operating in the GCC and will require significant time to plan, and integrate into existing processes.
Setting the objectives
- To be ready in time and a need of an effective and efficient work process between Tax function, IT function and its third party consultants
- To optimize its VAT deduction and to automate this VAT process as much as possible in SAP
- To limit VAT risks and meet VAT reporting obligations (e.g. reverse charge mechanism to avoid non VAT compliance)
- To automate VAT processes via enhancing the SAP 'as is' functionality where possible
- Set up processes and controls when VAT automation is not feasible
- To test new SAP functionality prior to go-live (sandbox)
The KEY Group is supporting one of the largest multinationals with the setup of the GCC VAT rules in SAP itselfRead more: Being ready for GCC VAT introduction when operating SAP
vat rates in gcc
ReplyDeleteVAT is essentially a consumption tax levied at every stage of the supply chain (added on the value added to goods and services) – from raw materials to the end product. It importantly serves as a source of revenue for governments.