VAT Implementation Procedures

//VAT Implementation Procedures
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VAT Implementation Procedures

Implementing VAT in an organization means updating and upgrading the entire ERP system and identifying the accounting obligations.

Since it affects the entire area of your business VAT is not just considered as a tax issue and it should be considered as a business issue.

  1. Scope & Analyzing the Impact of VAT

At the beginning, we have to identify the VAT impact on your business, estimate the cost of implementation, develop an implementation plan and allocate the resources.

  1. Implementation Process

Based on the information and analysis done in the first step, we have to modify the business process, change the systems, arrange the relation with Suppliers and customers, educate and train staff.

VAT Implementation will impact:

  • Procurement
  1. Pricing of Suppliers
  2. Purchase from Non Registered VAT Suppliers
  3. Import methods and pricing
  4. Payment terms
  5. Review the existing contracts
  6. Ensure the new Contracts whether VAT clause included or not.
  • Production
  1. Capital Expenditure treatment
  2. Payment of Royalty and production cost recovery agreements
  3. Technical Advice
  • Information Technology (IT)
  1. System changes
  2. Vouchering (TAX Invoice)
  3. VAT Returns
  • Finance & Accounts
  1. VAT Accounting
  2. Bad Debts
  3. Advance Payments
  4. Leases and rentals
  5. Loan & Mortgage
  6. VAT return preparation
  • Sales & Marketing
  1. Samples, FOCs
  2. Pricing Strategies
  3. Marketing strategy review
  • Human Resources
  1. Staff fringe benefits
  2. Incentives & Commissions
  3. Employees entitlements and claims
  • Legal
  1. Existing Contracts review
  2. Execution of New contracts
  3. Royalty Agreements
  4. Exclusive Agency agreements