1. Tax Reforms in GCC, 2018
VAT Implementation
14th August 2017

2. We look at your business as a whole and examine how it may be impacted from a VAT perspective in key dimension of technology and in respect of three key challenges: organizational, operational and financial.
Julia Stolyarova, Director ”
August 2017

3. VAT Project Implementation
Operating VAT
VAT IT Services on the Cloud

4. VAT Project Implementation
Operating VAT
VAT IT Services on the Cloud

5. Introduction to Tax Reforms in the Middle East
Operating assumptions
Traditional VAT system similar to EU
Cross-border reporting
Low rate
Limited exceptions
6 Countries
Common agreement on major principles
GCC Economic Agreement
Domestic implementing legislation allows for tailoring
Customs Union
Applicable to most goods and services

6. Answering (almost) every question
Need not learn everything but…
The ‘W’
Issue
Who
Who is the supplier, and who is the customer?
Are either party, or both parties registered?
Is the supplier or customer overseas?
Is it in the course or furtherance of a business?
What?
Is this a supply of goods or services?
Is this one supply, or multiple supplies?
Where?
The place where the supply is deemed to take place determines which jurisdiction’s VAT laws apply and the VAT liability applicable (e.g. standard, reduced or exempt)
When?
When do I need to account for the VAT and/or recover the VAT as the case may be?
In either case, what documentation do I need to satisfy the authorities?
What value?
The value question –VAT is determined by reference to the value of the supply, the nature of the supply and the rate applicable to it 1
Learn the 5 “W’s”
Get to grips with common terms 2 3 4 5

7. VAT Fundamentals: Error and Penalties
VAT returns submitted periodically together with payment
Normally three months or monthly, but we don’t know yet!
Authorities sometimes have discretion to accept alternatives
VAT return submission and payment determined country by country
Electronic VAT return submission and payment possible in most countries
Additional reporting requirements could arise for intra-GCC trade
Incorrect, incomplete or missing VAT returns = Tax authority estimation
Penalties for errors or failure to file and/or pay likely, and likely to be significant

8. New pricing regime and new sales volumes Contractual arrangements
Key Challenges
New pricing regime and new sales volumes
Contractual arrangements
Impact on working capital requirements
Staffing, training and technology
Working with Authorities
New Treatment of inter-company transactions

9. Who are the Stakeholders?
Economics Owner
Business Owner
Technology Owner
Financial visibility
Informed decision making
Financial and industry data
Balance Risk: cost, time and security
Customer Satisfaction
Growing Revenue
Productivity and efficiency
Strategic business technology goals
Better, faster, cheaper IT services
Address risk

10. SAP Launch Implementation Approach
Lead with best practices
Rapid, prescriptive, repeatable delivery steps
Accelerated by tools, templates and predefined content
Agile approach
Enabled for the cloud
The SAP Launch methodology is optimized for the cloud and varies from traditional consulting approaches. Instead of being consultative and building a full solution based on customer requirements, we lead with experience. Our experience of over 10,000 cloud implementations has allowed us to define a methodology that is built on the best practices of our solutions and implementations, using tools and templates that are proven effective. This prescriptive, repeatable process enables us to rapidly configure, test and launch our cloud solutions with our customers. By using SAP Launch as our implementation methodology, we help to ensure project efficiency and customer success.
Consultative approach
Highly customized solution
Development, not configuration
Time consuming and costly

11. SAP Launch Project Implementation Methodology
Consulting and iterative methodology with 4 distinctive stages
Prepare
Realize
Verify
Launch
Internal Kick Off
Project planning and resource budgeting
Project team orientation
Kick Off meeting
Requirements gathering Workshops
Configuration / Requirements Refinement
Data Migration
Custom Reports
Data Imports/Exports {integrations} / Extensions / Technical Developments
Integration Testing
User Acceptance testing
Go-Live Training
Go-Live Planning
Cut Over plan
Customer Success Transition
Go-Live Support
Project Close-out
Scope and Project Readiness
Configuration Acceptance
Integration testing Acceptance
Production Readiness Acceptance

12. Quality Gate Objectives
There are four Quality Gates, also called Q-Gates, executed during the implementation in order to ensure project success.
All stakeholders agree to the scope to be delivered during the implementation of the SAP solution. When necessary, a change order is executed.
Verification
Project 
All stakeholders agree that the business scenarios demonstrated in the solution meet the requirements to be delivered by the project and that all configuration questions have been addressed.
Acceptance
Solution 
All stakeholders agree that the systems, data and people are ready to execute the cutover from the legacy system(s) to the new system(s) .
Acceptance
Readiness 
All stakeholders agree that the cutover is complete and the organization is prepared to use and support the new solution.
Go-Live 
Now that we’ve reviewed the deliverables for each Quality Gate, let’s summarize the objectives.
The first Q-Gate, Project Verification, ensures that all stakeholders agree about the implementation project scope.
At the end of the Realize phase, the Solution Acceptance Q-Gate confirms that all stakeholders agree that the demonstrated business processes meet the implementation project requirements and that all configuration questions are addressed.
The Readiness Acceptance Q-Gate is when all stakeholders agree that the systems, data and people are ready to execute cutover.
Lastly, the Go-Live Q-Gate confirms with all stakeholders that the cutover is complete and the organization is ready to use and support the new solution productively.

13. Evaluation
Prepare
Realize
Verify
Launch
Support
6 wks
6 wks
4 wks
3 wks

14. VAT Project Implementation
Operating VAT
VAT IT Services on the Cloud

15. Segregation of Duties IT Functional Specialist Tax Accountant
Business Data Administrator
Assign VAT Code
IT Functional Specialist
Tax Accountant
Customer Services Clerk
AR Invoice System Generated
VAT Codes & Rates via configuration
Reporting
AP Clerk
AP Invoice Auto + Manually Selected

16. VAT Project Implementation
Operating VAT
VAT IT Services on the Cloud

17. On Demand: per user, per month Input / Output VAT Reporting
VAT IT Services
Bundle:
On Demand: per user, per month
Input / Output VAT
Reporting
Staff Training
Ongoing Support

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