VAT in GCC – Are Your Prepared?

It is high time for businesses in Gulf Corporation Council to be ready for VAT as it is already implemented in UAE and Saudi Arabia and Qatar, Oman, Kuwait and Bahrain would implement it between 2018 and 2019. The reality is that many of the business firms are not ready for VAT yet.

Key Features of GCC VAT

The rate of VAT in GCC would be fixed and it is 5%. Food items, education, public transportation facilities and certain financial services would be exempted from VAT. Some products and services are zero rated. B2B supplies in the GCC region will be zero rated. Exports are charged with VAT. The companies conducting business on taxable items should register for VAT and the registration for VAT is set as $100,000 per annum.

Areas of Impact

All the businesses in this region will be directly impacted by VAT. Businesses need to make scores of decisions regarding conducting business in the VAT regime. VAT does not mean you have to take care of your accounting alone. VAT will affect every department of your business and therefore, commercial and technological decisions you take must be accurate and perfect. In order for companies to be VAT ready, they need to run after a lot of things including the appointment of new staff and so on.

Action required now

Quality Horizon Pvt. Ltd. recommends every company in GCC region to take necessary actions to welcome VAT regime in this region. Accounting, tax, finance, human resource, IT, sales and procurement are the important areas necessary to be updated to be VAT ready. Updating these areas manually is not possible in this short span of time. Hence, we have introduced an ERP solution to make all your areas of business VAT compliant and it is named as GCC VAT ERP solution. A monthly subscription to our ERP software will make your Sales, Purchase, Inventory, Accounting, Expense, Budgeting etc. Compliant with VAT.