VAT Consultancy
What is VAT Consultancy?
Value Added Tax (or VAT) is an indirect tax which is imposed on selected goods and services that are bought and sold by businesses. It is also referred to as a consumption tax where the tax is collected for government by a registered business that sells goods or services to a customer VAT Consultancy
How Does it Work ?
VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service. The VAT cost collected throughout the supply chain is ultimately borne by the end consumer with businesses acting as an agent for the Government collecting VAT on the Value added to the goods and services at each stage of the supply chain.
VAT Consultancy Services In Saudi Arabia
More Information
VAT in the GCC is part of efforts across the region to support the diversification of government revenues. The introduction of VAT will create a new source of stable and predictable revenue for governments which can then be used to finance important public services. Introduction of VAT in Saudi Arabia is part of the ambitious economic transformation strategy aimed at building an economy and state budget with a reduced dependency on oil and gas revenues.
VAT will be introduced in the Kingdom of Saudi Arabia on January 1st 2018.
The VAT rate will be introduced at a standard rate of 5% – one of the lowest rates for VAT anywhere in the world.
VAT, as a general consumption tax, will apply to the majority of transactions of goods and services unless specifically exempted or excepted by law.
Businesses will be responsible for carefully documenting their business income and costs and associated VAT charges. Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods / services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government
Registered businesses will need to file a VAT return to the authority, on a regular basis, reporting VAT paid and VAT collected and settle the net difference with the authority.
Businesses will need to ensure timeliness and completeness of their financial and business records. This includes collecting invoices and accounting for the goods or services bought and sold as well as the VAT paid and charged.
More details on the introduction of VAT will be published in the coming months on the GAZT website.
VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service.
عزيزنا، يسرنا في مؤسسة هلكون لتقنية المعلومات (تيلينوك ) أن نشارككم خدمات الاستشارات والتطبيق لضريبة القيمة المضافة على النحو التالي: (يرجى الاتصال بنا في حال وجود أي متطلبات..)
Project Details for VAT Implementation (Scope & Methodology)
خدمات الاستشارات والتطبيق لضريبة القيمة المضافة
Phase 1 Activities – Impact Assessment & Response
- Project setup
- VAT awareness training
- Business/Transactions Review
- Review of contracts (up to12)
- IT System Review
- Assess VAT governance framework
- Assess VAT Compliance model
- Implementation Plan
المرحلة 1: الأنشطة – تقييم الأثر والاستجابة:
- إعداد المشروع
- تدريب التوعية بضريبة القيمة المضافة
- مراجعة الأعمال / الإجراءات
- مراجعة العقود (حتى 12)
- مراجعة نظام تكنولوجيا المعلومات
- تقييم إطار حوكمة ضريبة القيمة المضافة
- تقييم نموذج الامتثال لضريبة القيمة المضافة
- خطة التطبيق
Deliverables:
- VAT Impact Summary
- Response Strategy
- Roadmap
المخرجات:
- ملخص تأثير ضريبة القيمة المضافة
- استراتيجية الاستجابة
- خارطة الطريق
Phase 2 Activities – Planning Strategy & Preparation
- Review legislation and identify VAT Technical issues and areas of ambiguity
- Design VAT governance framework
- Design VAT Compliance model
- IT–Develop Business Requirement Document
- Review IT Design
المرحلة 2: الأنشطة – استراتيجية التخطيط والتحضير:
- مراجعة التشريعات وتحديد المشاكل التقنية ومجالات الغموض في ضريبة القيمة المضافة
- تصميم إطار الحوكمة لضريبة القيمة المضافة
- تصميم نموذج الامتثال لضريبة القيمة المضافة
- وثيقة متطلبات الأعمال التي وضعتها تكنولوجيا المعلومات
- مراجعة تصميم تكنولوجيا المعلومات
Deliverables:
- Project Plan
- Transaction Mapping & Process for Design
- System Requirements
- Document Templates
المخرجات:
- خطة المشروع
- عملية تعيين ومعالجة الإجراءات للتصميم
- متطلبات النظام
- نماذج المستندات
Phase 3 Activities – Implement & Test
- IT Testing Support
- User Training Programs (up to 2 sessions)
المرحلة 3: الأنشطة – التنفيذ والاختبار:
- دعم اختبار تكنولوجيا المعلومات
- برامج تدريب المستخدم (حتى دورتين)
Deliverables:
- VAT Technical Position Summary
- Internal VAT Governance Manual
- Training Plan
- Test Review & Support
- IT Configuration
المخرجات:
- ملخص الموقف الفني لضريبة القيمة المضافة
- الدليل الداخلي لحوكمة ضريبة القيمة المضافة
- خطة التدريب
- مراجعة ودعم الاختبار
- ضبط مكونات تكنولوجيا المعلومات
Phase 4 Activities – Post Implementation Review
- Registration
- Review of first tax return
المرحلة 4: الأنشطة – استعراض مرحلة ما بعد التطبيق
- التسجيل
- مراجعة الإقرار الضريبي الأول
Deliverables:
- Registration the Company at GAZT
- Review First VAT Tax Return
المخرجات:
- تسجيل الشركة لدى الهيئة العامة للزكاة والضرائب
- مراجعة الإقرار الضريبي الأول
Impact Assessment from a VAT Perspective
تقييم الأثر من منظور ضريبة القيمة المضافة:
VAT Structure Optimization
- Analyzing structure to optimize recovery rate for input VAT in relation to exempt supplies
- Review intercompany transactions to detect VAT inefficiencies
- VAT Companying opportunities
- Outsourced activities
Intercompany Transactions
- VAT treatment of inter-company transactions (particularly if VAT Companying is not applicable)
- Place of supply rules for cross-border and intra-GCC transactions
- Head office recharges
Contracts
- VAT treatment of existing agreements (pre-announcement/implementation of VAT)
- Review contractual terms
- Prepayments and deposits may trigger VAT liability
Import of Goods and Services
- Impact of reverse charge mechanism
- Import VAT
- VAT treatment of cross-border and intra-GCC transactions
Pricing Policies
- Impact of cost increases due to irrecoverable VAT on costs
- Impact on profit margin due to VAT costs
- Possible implications on pricing of products
VAT Treatment
- Correct VAT treatment
- VAT exempt
- Subject to VAT at standard or zero rate
Implementation of the VAT & Testing on VAT return samples
Assist the Company through a field training for the related responsible departments in implementing of the VAT, after reviewing a sample of the suppliers and customers contracts and what is the impact of the VAT to these contracts, and how can the client reflect it, also will be provide a field training of the responsible department on how they should prepare the VAT return.
Training for Employees
Provide training to employees thereby ensuring a deep understanding of VAT and so that they can deal it properly.