Value Added Tax and Impact Assessment

Module 1: An Overview of VAT

• Various methods of levying indirect tax on goods and services.
• General concept of VAT.
• Different methods for determining Value Addition.
• Different types of VAT.
• Invoice credit system.

MODULE 2: An update on what is happening in the GCC region regarding the introduction of VAT & Discussion on other key concepts provided in the GCC VAT Framework Agreement

• List of member countries of GCC.
• Unified Vat agreement entered into between member countries.
• Salient features of unified VAT agreement.
• Important definitions.
• Scope of tax.
• Supply of goods.
• Supply of services.
• Deemed supply.
• Reverse Charge Mechanism.
• Place of supply.
• Valuation of supply.
• Valuation of imported goods.
• Zero rated supply.
• Exempt supplies.
• Input tax credit.
• Registration.
• De-registration.
• Learnings from EU on implementation of unified VAT System.
• Illustrations on how VAT works.

Salient features of VAT law based on draft law proposed by Government of Saudi Arabia.

MODULE 3: Discussion of key VAT concepts such as time of supply, place of supply, registration requirements, difference between a taxable supply and an exempt supply etc. & Impact on business operations (including distinction intra-SEZAD vs. SEZAD to Oman vs. cross border)

• VALUATION
• General method of valuation.
• Related person valuation.
• Fair market value concept.
• Valuation of nominal supplies.
• Adjustment to value of a supply.
• Cancellation or termination of contract.
• Alternation in terms of conditions.
• Change in nature of supply.
• Procedure when there is an adjustment to value of supply.
• INPUT TAX DEDUCTION
• General.
• Pre-registration purchases.
• Condition for deduction of input tax.
• Ineligible inputs/ input services.
• Proportionate deduction in case of common use.
• Capital assets.
• LOCATION OF GOODS
• General.
• Door delivery supplies.
• Export.
• Services to non-GCC residents.
• Transportation of services to outside the country.
• Medicines and medical equipment.
• Supply of investment materials.
• Exempt imports.
• Collection of tax on imports.
• Payment of import tax to returns.
• Conditions for claiming refund.
• Procedure for refund.
• Exemption in VAT and how the tax is calculated by businesses that deal in exempt supplies.
• Financial services.
• Lease or license of residential estate.
• Tax calculation.
• Registration.
• Group registration.
• De-registration.
• Who has to issue tax invoice.
• Time of issue.
• Contents of tax invoice.
• Simplified tax invoice.
• Contents of simplified tax invoice.
• Issue of credit and debit notes.
• Payment of tax
• Due date of payment of tax.
• Payment of tax in case of assessments.
• Mode of payment.
• Details to be provided.
• Extension of time to pay tax.
• Time limit for filing returns.
• Assessment procedure.
• Correction of tax returns.

MODULE 4: Impact of VAT

Place of Supply

• Place of supply – General.
• Place of Supply – Real estate services.
• Place of supply – Telecommunication services.
• Place of supply – Other services.
• Place of supply – Goods situate in member country.
• Exempt supply.
• Zero rated supplies.
• Export

MODULE 5: Roadmap on how organisations may structure its preparation for VAT & changes necessary to accommodate VAT

• A thorough evaluation of the overall impact of VAT on business determining how VAT affects the cost of their goods/services sold and productivity.
• Assessing the impact of VAT on demand of products/services.
• A thorough understanding of the concepts by all concerned including top management.
• A thorough understanding of the procedural of the law and the procedures by finance team dealing with VAT. Proper training of the staff concerned.
• The ERP and other accounting systems to be geared for VAT compliance.
• Alteration/amendment to all pending purchase orders, contracts regarding VAT implications.
• Proper documentation to ensure further input tax deduction and VAT compliance.
• VAT training which includes working on a real life project assignment.

MODULE 6: Impact on Budget 2019

• Impact on Government Revenue.
• Impact on Government Expenditure.
• Impact on GDP/GNP/ NNI.
• Impact on Fiscal Deficit.
• Impact on competitiveness of Oman companies and the consequent impact on their profits & GDP.

MODULE 7: Vetting of ERP software compliance with GCC VAT framework.

• VAT mapping of business processes and transactions.
• Effecting changes to all underlying ERP to reflect VAT processes.
• Deciding on use of VAT specific tools.
• Putting in place appropriate governance and control.