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