Legal Framework (Saudi VAT Law) Applicable w.e.f. 1st of Jan 2018 GCC Agreement (Finalized and published) VAT Law (Final Law Published on July 28th 2017) VAT Implementation Regulations (Regulations Published on Aug 26th 2017) Tax Rulings (as required) Legal Framework (Saudi VAT Law) Applicable w.e.f. 1st of Jan 2018

Value Added Tax (VAT) Model (SAR 800 + VAT 40) Manufacturer (SAR 900 + VAT 45) Distributor (SAR 1000 + VAT 50) Retailer Landed Cost SAR 1050 Consumer SAR 40 SAR 5 (SAR 45 – SAR 40) SAR 5 (SAR 50 – SAR 45)

Rates and Input Credit mechanism Input Tax Deductible 5% Standard Rate 0% Supply of Medicine and Medical Equipment Internal (Intra GCC) / International Transportation Supplies of investment gold, silver, and platinum Supplies outside the GCC Territory Non Deductible Exempt Rent of residential real estate Life insurances Out of Scope Capital markets activity All margin-based financial products Supply of residential real estate for own / close relative use

Domestic / Export and Import Transactions Domestic Sales

VAT Periodical Compliance Upto SAR 40MM Above SAR 40MM Filing frequency: Quarterly First filing period: Jan – Mar 2018 First filing deadline: 30-April 2018 Filing frequency: Monthly First filing period: Jan 2018 First filing deadline: 28-Feb 2018

Post Implementation Support Action plan Change Management Impact Analysis “As is” Study Suggesting Tax Optimization Scenarios Drawing Change Management Roadmap Implementation Registrations Policy and SOPs Team Training System Integration support Post Implementation Support Day to day queries Support for First 3 Returns *5 to 15 man days *10 to 35 man days *5 to 15 man days *Effort estimate for a mid-sized enterprise 50:50 offshore : onsite mix

VAT Impact Collaborative Approach Being Transactional in Nature Supply Chain Assess costing Re-design Processes Tax & Finance Complete registration formalities Plan for transition to new law Plan for the change in cashflow Design compliance calendars Add relevant tax clauses in relevant agreements Validate critical documentation and formats IT Systems Update VAT data in vendor / customer masters Update Inventory masters with tax class and rates Develop document formats for Invoices / debit note / credit notes Design relevant statutory reports for GST filing and record keeping Human Capital Re-skill / recruit / outsource Assess and change the division of responsibility with respect to VAT Sales & Marketing Collect Customer VAT Data Restructure at existing contracts VAT Impact Being Transactional in Nature

Engagement Model GST Team Engagement Leadership Technical Partners High level Technical Leadership Project Team Understand, IT support and Project Management Technical Team Domain support Compliance Team Registration and Filing Support

Why APMH? Tax Firm Since 1985 Thoughtful and Experienced Ecosystem In-depth GST implementation experience for India Committed point of contact for each client relationship Full-fledged IT implementation Team Trained Offshore Compliance Team Specialized Tax Content Team Tax Firm Since 1985 Thoughtful and Experienced Ecosystem

Madhav Wagle CA Pranav Kapadia CA Mitesh Katira Partner Partner Senior consultant Profile Brief Mitesh is a Chartered Accountant and a ISA qualified with specialisation lies in Business Advisory Services with more than 15 years of experience. Mitesh has been focusing on Internal Audits, Compliance Outsourcing and GST implementation. He has been helping corporate and Multinationals on GST Impact Analysis, Implementation and Compliance. Mitesh has been convenor for Information Technology Committee of the CTC i.e., Chamber of Tax Consultants. He is also a part of IT committee of the WIRC of ICAI. Mitesh has also been a Convenor of the Ghatkopar C A CPE Study Circle. Specializations VAT Implementation VAT Transaction advisory VAT compliance outsourcing Corporate Training Process Implementation Education and Certifications Chartered Accountant DISA - ICAI FAFP – ICAI Certified trainer india GST by ICAI Profile Brief Pranav’s expertise lies in Advisory, Audit, Compliance, Litigation Matters on Value Added Tax (VAT), Central Sales Tax (CST), Profession Tax (PT) and Service Tax. Pranav has been consultant to large corporates with presence in Multiple States with complex structures in the Indirect Tax, especially VAT. Pranav lucidly deals in complex legal matters like Works Contracts (WCT), DDQ (Determination Disputed Question) now called Advance Ruling (AR), Assessments and Appeals related to VAT and Allied Tax Laws. He is the President of The Goods & Service Tax Practitioners Association (GSTPAM) of Maharashtra. Pranav is also part of the Indirect Tax Research Committee of the WIRC of ICAI. Specializations VAT Implementation VAT Opinions VAT legal representation Transaction Support Education and Certifications Chartered Accountant DISA - ICAI Certified trainer for India GST by ICAI Profile Brief Madhav is senior GST consultant. Madhav has been handling clients with complex business models in GST compliance management. His vast experience in the indirect tax while working for 37 years in Color Chem which is now known as Clarinet mainly in excise, SCM and SAP is coming handy for consulting on the GST matters. Madhav has been handling corporate clients in and around Roha MIDC as well as Mumbai, with respect to GST consulting and compliance from APMH Roha office. Madhav has been studying and developing content for consulting VAT for corporates and multinationals in GCC region, mainly Saudi Arabia and UAE.  Specializations IT system advisory VAT VAT compliance management VAT process designing

Clientele spread across variety of Sectors & Ownership Structures….. Trading and Distribution Banking SAAS Logistics Engineering Manufacturing and Ancillaries Construction and Real-estate Hospitality Broking e-commerce Multi-Nationals VC / PE Funded Family Owned Startups Small and Medium Large

Questions ??? E-Mail : mitesh@apmh.in Mob : +91 9833777556 Web : www.apmh.in