ePROMIS is supporting organizations in transforming their business and operating models to meet the market standard and regulatory or Tax compliance. ePROMIS ERP not only assures your VAT readiness but also modernize your entire business processes.

1. Your VAT
Readiness
www.epromis.net
Value Added Taxation is becoming a reality in the GCC
member countries from 1st January 2018. If you are not
prepared to face VAT implementation deadline by now,
you are already too late.

2. Another Good Reason to choose ePROMIS ERP for
Your Business
01 | www.epromis.net
The introduction of VAT is the
biggest fiscal reform that has ever
gone into legislation in the GCC
member states. VAT implementation
will start from Jan 1, 2018, and
likely to be implemented in all GCC
countries by the end of the year
2018. This much-anticipated VAT
implementation will affect nearly all
businesses in the UAE and the KSA
as well as in rest of GCC.
Organizations in Gulf have very
limited time for VAT readiness.
VAT registrations will open in UAE
and KSA from the third quarter of
2017 which will become
compulsorily by the end of the year
2017. The introduction of VAT
demands a restructuring of your
current business processes to
achieve hassle-free compliance. As
per UAE ministry of finance ruling,
any business that has taxable
supplies or imports of over
AED 375,000 must register for VAT.

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The companies that do not act
quickly on assuring VAT compliance
by re-organizing business systems
may get penalized because of
existing systemic inefficiencies.
For over three decades now,
ePROMIS is supporting
organizations in transforming their
business and operating models to meet the market standard and
regulatory or Tax compliance. ePROMIS ERP not only assures your VAT
readiness but also modernize your entire business processes.

4. Getting Familiar with
Value Added Tax
Your VAT Readiness
“A type of general consumption
tax that is collected
incrementally, based on the
value added, at each stage of
production or sales.“
Definition of VAT
The Value Added Tax is a form of indirect
tax that is applied to the consumption of
most goods and services, which technically
leave no burden of VAT on the 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.
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.

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Your VAT Readiness
How does it Work?
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
VAT has been a standard
source of revenue for
governments around the
world. In GCC member
states, the VAT will mostly
impact prices of luxury
items. The government of
UAE has already announced
a list of 100 items that will
not be included in VAT.
These include education,
healthcare, etc.
Items exempted from VAT:
• Local transport (buses, taxis)
• Residential Property under lease
• Bare Land
Reasons why VAT is introduced
in GCC:
Zero Rated Items:
• Exports outside GCC
• Medicine and Medical equipment
• First sale of residential property
• Education
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 a luxury
dress is sold at a price of AED 1,000,
it has AED 50 as VAT included in its
selling price. This VAT is paid by the
consumer who buys the dress. 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.
The increase in cost
of public services
To find source of revenue
from non-oil sectors
To improve the living
standards further

6. Your VAT Readiness
05 | www.epromis.net
Impact of VAT Implementation
on Your Business Processes
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. Across the
industries, the following processes are impacted by VAT.
Deploying the latest VAT enabled ePROMIS ERP will
minimize the risks and complexities associated with
VAT’s impact on your business.

7. Your VAT compliance requirement checklist will include:
Critical matters that require your immediate attention:
VAT
registration
Filing VAT returns
with the TAX authority
Remitting
VAT Payables
• VAT clauses in commercial contracts
• VAT compatibility of your ERP system
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Your VAT Readiness
1. Procure-to-Pay
• Global Trading
• Supplier Management
• Compliance & Risk Requirements
• Supply Chain Performance
Management
• Good Return
• Sales Monitoring & Analytics
• Sales & Operations Planning
• Demand Planning
• Stock Reservation
• Warehouse Management
• Inventory Analysis
2. Sales Management
• Sales Contracts
• Sales Order Management
• Claims, Returns & Refunds
• Cash & Credit Invoicing
3. Inventory & Warehousing
• Goods Issue
• Goods Receipt
• Stock Ageing
• Payments & Bank Communications
• Cash & Liquidity Management
• Profitability & Cost Management
• External Processing
• Repetitive Manufacturing
• Just-in-time (JIT) Outbound
4. Accounting & Financials
• Receivables Management
• Treasury & Financial Risk
Management
5. Manufacturing Operations
• Production Control
• Manufacturing Execution
• Subcontracting

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.
Whether you’re already a customer or new to ePROMIS, you can quickly
comply with the GCC VAT agreement. At ePROMIS, we understand 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 you to get started with VAT enabled
ePROMIS ERP in just weeks.
Contact us to learn more about our latest VAT enabled ePROMIS ERP
and VAT incorporation program for earlier ePROMIS editions.
www.epromis.net
ePROMIS Solutions
The Middle East & Africa - Head Office
+971 4 3706000 | info@epromis.net
Achieve VAT Compliance with
ePROMIS, a Global ERP FrontRunner
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