All six of the GCC countries have signed a VAT framework agreement that sets out key VAT principles. Each country will set out their own national VAT laws based on these principles.  Countries such as the UAE and Kingdom of Saudi Arabia have implemented VAT as of January 2018.

There are a number of key reasons why early VAT planning and conducting a VAT impact assessment will benefit your company:

  • Identify limitations: review current business structures for VAT efficiency, resources, processes and system needs.
  • Get up-front views on the impact and the area where changes would need to be considered and develop a project plan to address the same.
  • Upfront VAT planning: Identify more VAT efficient operating and trading structures so as to protect financial margins that may be impacted by irrecoverable VAT costs and stay ahead of competitions on the pricing of products.
  • Secure reliable resources in advance to ensure smooth implementation which will, in turn, reflect lower costs.
  • Successful completion of this important project will require early planning considering the specifics of the industry in which the client operates as well as the need of the client.
  • Consultant’s end-to-end implementation methodology will ensure timely execution and that proper testing is completed to ensure proper compliance at the level of each individual entity.

Our approach to assisting our clients with assessing the VAT impact is structured and follows a clear phased process.Nuummite Consulting Phased Approach for VAT impact

  • The key objective of an early VAT assessment and preparation is to give the client a good preliminary understanding of the impact of VAT on its business and the implications on the various subsectors, processes, people, and functions.
  • An early start and assessment of the risks will allow the client to keep abreast of the developments, get up-front views and manage efficiently and effectively the developments.
  • The next phase in the VAT readiness and implementation project with the client will require a structured approach for implementing the changes within the lead time and preparing for successful post-go-live compliance at the level of each entity.
  • Thus, the VAT readiness project will require a coordinated effort and contribution from the various departments/functions in client throughout the execution of the project.

For VAT support, consultations, and inquiries contact: vat@nuummite.com