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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

Contact us

Mr. Johnson K. Rajan

Partner, IMC, Middle East

Ms. Himadri Pathak

Consultant, Middle East Indirect Taxes