Tax & Legal
VAT IN THE GCC – IMPACT ON THE BUSINESS
- Ensure whether proper books of accounts are maintained and updated
- Check whether your business meets the criteria for registering for VAT collection
- Registration for VAT in the GCC
- Collection of VAT in the invoices raised
- Keep a record of VAT paid in Invoices of Vendors to avail credit
- Filing VAT returns and payment of VAT to the Government
- VAT shall impact the pricing structure and profit margins to factor the VAT in all the invoices raised by business. A critical analysis will be required for this to ensure that business will face the least impact by preparing customized pre and post VAT scenarios for every business.
- Also, increase in price may result in result in decline in customer spending. It will be challenging to maintain the same.
- Business model should be restructured to ensure
- Increased efficiency in operations
- Restructuring of supply models to ensure reduce cost of procurement of raw materials and capital goods
- Possible negotiations with vendors and suppliers
- Restructuring of Human resources to ensure that the staff is competent enough to deal with the challenges bough in by the new law
- Restructuring of accounting systems and IT systems to ensure proper compliance and competency with new requirements
HOW IMC CAN HELP ?
- Understanding the needs of client’s business and estimating the impact of VAT on the business
- Preparing Pre and Post scenarios for ascertaining the impact on business
- Analysing various areas of positive or negative impact and the causes behind them
- Providing more accurate information for decision making
- Advise client about various legal and procedural requirements
- Checking and verifying the books and records as per the legal requirements
- Prepare an implementation plan based on requirements of client
- Registration with relevant Governmental authorities
- Completing documentation and other requirements
- Liasoning with authorities and governmental bodies on behalf of client