Value Added Taxation would have an impact on your entire business processes from the point of sales, invoicing, accounting, and reporting. Whether your Enterprise Resource Planning is an in-house system or a globally renowned software, it will need to be enhanced and modified incorporating all aspects of VAT implementation. ePROMIS VAT incorporation program will allow organizations to have tax functionalities in their existing ePROMIS ERP software systems.

1. Aligning VAT
with your
ePROMIS ERP
www.epromis.net

2. ePROMIS VAT
Compliance Roadmap
for Existing Customers
VAT is becoming a reality in Gulf Region, and the
UAE and the KSA were the first GCC member
states publically announced the VAT
implementation, with a proposed effective date
of 1st January 2018. The formal discussions on
VAT introduction had begun at Doha conference
of GCC Under-Secretaries of the Ministries of
Economy and Finance, March 2015 and the
member states have worked together to build a
comprehensive VAT introduction framework
since then. All GCC countries will make VAT
regulations laws under the umbrella of an agreed
upon framework in their respective countries.

3. Aligning VAT with your ePROMIS ERP
www.epromis.net | 02
“A type of general consumption
tax that is collected
incrementally, based on the
value added, at each stage of
production or sales.“
As the value added taxation is new to GCC
countries, a general concern could have raised in
the minds of people about the impact of VAT
implementation on businesses which have
historically been enjoying a ‘tax-free’ environment.
VAT started its journey from 9 countries in 1969
and is already implemented in about 90% of the
countries around the world, as by the end of the
year 2015, 166 countries in the world have
implemented VAT. Considering VAT’s rapid spread
and success, it’s doubtless that the benefits of VAT
on a longer run would surpass the anxiety of its
initial days of implementation.
Getting Familiar with VAT
Value Added Tax or VAT can be described as

4. 03 | www.epromis.net
The Value Added Tax is a form of
indirect tax which applies to the
consumption of most goods and
services, thus technically leaving no
burden of VAT on businesses. i.e. by
registering for VAT, your company
can avail the Input Tax credit paid to
the suppliers and pass the burden
to the customers. It's a tax on
transactions not on profits.
There is a misconception that VAT is
charged at every stage of product
development life cycle, which is not
true at all. It will be 5% of final selling
price, not 5% of every stage. For
instance, if the price of a designer
shirt is AED 1,000, it has AED 50 as
VAT included in its selling price. A
consumer who buys the dress pays
this VAT. If VAT is charged at every
stage of product development, the
price of items will rise enormously. A
supply chain process collects VAT,
and end user pays bears the net
VAT.
It is estimated that the VAT implementation
will help UAE government in generating
AED 12 billion of additional revenue. This
revenue can be utilized to give better
amenities to local people and millions of
immigrants.
In GCC member states the VAT will mostly
impact prices of luxury items. For UAE, the
government has already announced the list of
100 items that will not be included in VAT.
These include education, healthcare, etc.
How does it Work?
Aligning VAT with your ePROMIS ERP
MANUFACTURER
SUPPLIER WHOLESALER
CUSTOMER RETAILER
Sale - material
AED 1,000 +
AED 50 VAT
Sale - product
AED 2,000 +
AED 100 VAT
Sale - product
AED 3,000 +
AED 150 VAT
Sale - product
AED 5,000 +
AED 250 VAT
*This example is calculated considering the VAT rate as 5%
AED 50
Government
Income AED 250
AED 50 AED 100
AED 100
AED 150
AED 250 AED 150

5. Aligning VAT with your ePROMIS ERP
Preparing for VAT
www.epromis.net | 04
VAT will impact all parts of your business, including;
1. Supplier-Customer relationship
• Supplier’s pricing and your pricing
strategies
• Invoice processing time
• Import purchases and global trading
• Educating suppliers and
customers
• Goods return
2. Finance & Accounts
• Advance payments and deposits
• Loans and investments
• Leases and rentals
3. Legal
• Existing and new contracts
4. Information Technology
• Updating or upgrading ERP
• VAT returns
• Asset disposals
VAT
registration
Filing VAT returns
with the TAX authority
Remitting
VAT Payables
Recording all
business transactions
As per UAE ministry of finance
ruling, any business that has
taxable supplies or imports of over
AED 375,000 must register for VAT.
If your enterprise is above that
threshold, it's mandatory to collect
VAT after its implementation. In the
UAE and the KSA, the VAT
registration will open from the
third quarter of 2017 which will
become compulsory by the end of
the year 2017.
Although VAT is not intended to be
a tax on business rather on the
consumer who consumes it, the
operating cost of your company is
likely to go up while implementing
VAT. This could be due to VAT
compliance requirements,
consultations and documentations,
employee training, and updating or
upgrading your current Enterprise
Resource Planning system.
For stable operations of VAT,
business may require some time to
settle down as VAT operations are
new to GCC.
Your VAT compliance
requirement checklist will
include:

6. 05 | www.epromis.net
Aligning VAT with your ePROMIS ERP
Your business is required to be in full compliance with the VAT to remain in business after
Jan 1, 2018. ePROMIS has developed a strategy to help existing ePROMIS ERP customers
to execute smooth sailing of VAT roll out. The ePROMIS ERP edition implemented in your
organization was not incorporated with the tax functionalities, yet you have a great
opportunity to achieve your VAT compliance through our exclusive VAT impact
assessment and implementation roadmap for existing customers.
Your current ePROMIS ERP may require modification to be VAT compliant. Not only that,
unless your employees are educated and fully trained on VAT protocol, handling of TAX
operations at your organization could be unresolved. ePROMIS VAT incorporation
program ensures a transparent approach for our customer organizations to calculate
rate of tax, identify refund procedures, maintain and improve current accounting
procedures, and knowledge transfer, helping you guarantee your VAT compliance.
ePROMIS strategic VAT incorporation program is a service upon request, based on
proven implementation methodologies. The phases of this exclusive program include a
Feasibility study, Impact analysis, Solution Design & Development, Testing & Go-live, and
Monitor and Control.
Tax Compliance with your current
ePROMIS ERP edition
ePROMIS strategic VAT incorporation program
YOUR REQUEST FOR CONSULTATION
FEASIBILITY STUDY & IMPACT ANALYSIS
Our VAT incorporation program for previous
ePROMIS ERP editions is a service upon request
To evaluate positive and negative impacts of
the VAT implementation in the existing system
SOLUTION DESIGN & DEVELOPMENT
To design and develop a solution that
meets business needs
TESTING & GO-LIVE
System becomes operational after
end-to-end testing of the developments

7. www.epromis.net | 06
Aligning VAT with your ePROMIS ERP
ePROMIS understands the need for quick, reliable,
and pragmatic VAT implementation strategy. With
our industry experience and expertise in the region,
we have identified parameters that may influence
the VAT implementation roadmap. Our best
practice implementation plan enables easy VAT
incorporation to your current ePROMIS edition -
Get started on VAT in just weeks.
FastTrack Implementation

8. ePROMIS is a US based global enterprise software provider known for
innovative products and outstanding service since 1981. ePROMIS provides
enterprise management solutions like ERP, HCM, CRM and other real time
business applications to multiple verticals and industries. ePROMIS ERP in
the year 2017 has been ranked 14th among the top ERP systems globally,
based on customer experience and popularity.
The contents of this document are for informational purposes only. This document and its contents, including the functional
content, viewpoints and dates expressed herein are believed to be accurate as of its date of publication, August 2017. The
information, products and services described herein are subject to change at any time without notice. ePROMIS makes no
guarantee, warranties or representations with regard to the enclosed information provided in this document. ePROMIS
specifically disclaims any liability with respect to this document and no contractual obligations are formed either directly or
indirectly by this document. Each user of ePROMIS Software is likely to be distinctive in their requirements in the use of such
software, therefore users of this document are always advised to discuss the content of this document with their ePROMIS
account manager. Usage of the ePROMIS software solution(s) described in this document with other ePROMIS software
solution(s) or third party products may require the purchase of licenses of these respective products and solution(s). This
document may not be reproduced or transmitted in any form or by any means, for any purpose, without the prior written
consent of ePROMIS Solutions Inc. Copyright © 2017 ePROMIS Solutions Inc. All rights reserved. ePROMIS, the ePROMIS logos,
mentioned herein are registered trademarks or trademarks of ePROMIS Solutions Inc.
Contact us to learn more about our VAT upgrade
program and other products/services.
www.epromis.net
ePROMIS Solutions
The Middle East & Africa - Head Office
+971 4 3706000 | info@epromis.net