With the implementation of Value Added Tax (VAT) in the UAE from January 1, 2018, almost all organisations are experiencing its effect. While VAT is not a tax on business but a consumption-based tax (charged to the buyer and eventual user of the service), it is the duty of the business entity to collect and remit the tax to the government. Given that, VAT has an impact on operational costs, cash flows and hence on profitability, accounting obligations and VAT costs need to be identified to be addressed correctly. IT systems also need to be enhanced to ensure VAT compliance.
Key considerations for businesses are to review existing business models, transactions and processes to understand the impact on financial (margins, pricing, cashflow), operational (supply chains/processes, transaction flows) and legal (contract, business structures) aspects of the business. Subsequently, they need to put processes in place for a seamless and accurate VAT structure and compliance. Involvement of senior management and building a structured approach are the key facilitators here.
PKF’s comprehensive approach helps your organisation meet its VAT responsibilities in an efficient, structured and timely manner. PKF can also assist you in evaluating and undertaking your Excise compliance.
Our methodology to assist clients in the VAT & Excise implementation process for businesses is as follows:
Our team of taxation experts supports you during the implementation stage to take the VAT/Excise roadmap by assisting you in areas such as:
- Analysing the impact of VAT/Excise on your business
- Advising on managing the VAT/Excise transaction process
- Advising on required accounting systems under VAT/Excise
- Invoicing and other related documents under VAT/Excise
- IT Migration