VAT Implementation Services

In the rapidly evolving legal & compliance environment of the GCC, the introduction, policies & procedures of VAT are the hottest of hot topics up for discussion. The introduction of VAT doesn’t just affect business operations but also the prices, marketing, accounting procedures & IT infrastructure.

Businesses with activities in Qatar will need to consider the implications of the introduction of VAT on their transactions and ensure that they are ready to comply with the new VAT requirements.

Apparently, it would be a crucial time for all types of businesses who are operating in Qatar to plan for proper VAT implementation as soon as possible.

Our experience from implementation in various jurisdictions has shown that businesses need significant lead time to prepare their people, customers, vendors and systems for the introduction of VAT.

Business needs to assess what is VAT and develop a plan to identify the necessary steps to be taken during the implementation of VAT. Further, it must analyze its transactions to determine all future VAT liabilities and compliance obligations.

MBG, with experience of implementing VAT across various jurisdiction in GCC, can help our clients on the following:

Phase 1 – Pre VAT Implementation

Analyse financial impact on:

• Valuations
• Working capital
• Cash flows
• Product pricing
• Input expenses

Contract Redrafting:

• Contracts vetting and redrafting
• Identifying clauses that need amendments
• Checklist of new clauses to be incorporated

Trainings:

• Making the organisation work force VAT ready by training them on VAT Compliances
• Making the suppliers and customers VAT ready by training them on VAT Compliances

Phase 2 – Transitional Period

Revised Formats: Analysing the changes required in existing formats of the following:

• Formats of invoices/ debit/ credit note
• Formats of registers
• Formats of returns
• Formats of declarations

IT Migration:

• Anlysis of tax trigger areas where the IT software partner needs to make changes
• Anaysis of steps to make the exported date compatible with VAT portal
• Evaluations the appropriatness of changes made in the IT system

Technicalities

• Analysis of the following transitional transactions:
• Transitional procurements & inventory management
• Transition movement of goods

Treatments of:

• Sales return
• Goods returned sent for approval before VAT
• Goods send for testing, job work

Phase 3 – Post VAT Implementation

Registration

• Analyzing the different place of supply for which registration should be applied
• Registrations for GCC member state and transactions in different member states.

Compliances

• Accounting treatment of existing unsold stock and refunds
• Monthly, Quarterly and yearly compliances
• Tax Advisory Services

Review Rigor:

• Review of VAT working
• Review of first level of operations :
• Compliances
• Rate of tax
• Invoices
• IT reports
• Test Check of internal controls.