This document discusses Triniti's approach to enabling GCC countries for VAT compliance effective January 1st, 2018. It provides an introduction to GCC VAT, outlines Oracle's landscape for VAT compliance, and describes Triniti's proprietary UI RnR automation tool to strategize and execute GCC VAT enablement projects in the shortest time possible through over 90% automation. The automation improves reliability and reduces project timelines by 60% compared to manual implementations.

1. GCC VAT Enablement
VAT SET GO - Triniti Offering

2. 2
Agenda
Introduction to GCC VAT
Oracle Landscape
Strategize GCC VAT Enablement - Triniti Approach
VAT SET GO with UI RnR Automation
Automation Difference
Triniti Advantage & GCC VAT flowchart

3. 3
20 Years in ERP Consulting
Oracle EBS, VCP, Cloud and BI
Products
Managed Services
SFDC, QlikView, Arena
About Triniti
TRINITI

4. 4
▪ VAT is an indirect tax and one of the most common types of
consumption tax found around the world.
▪ GCC Countries will be joining the league of this widely adopted
consumption tax regime which is already operational in almost 166
countries.
▪ 1st Jan 2018 is the timeline planned to Introduce VAT at a Standard
Rate of 5% along with 0% and Exempt Rate.
▪ It is crucial for businesses to start preparing for VAT right away with
specific insight relevant to the GCC VAT implementation,
assessment and reporting.
Introduction to GCC VAT
VALUE ADDED TAX
January 1st,
2018

5. 5
▪ How Oracle is stack up for GCC VAT without legislation being in place?
▪ Oracle E-Business Tax/Fusion Tax engine platform comes with a configurable
platform known as “Regime to Rate Flow”
▪ ebTax framework is readily compliant and configurable to GCC VAT and this would
be very similar to other ebTax deployments in various geographies.
▪ Based on this landscape, essentially there are broadly two areas that needs to be
addressed for GCC VAT solution offering,
1. Tax Automation
2. Reporting for Filing and Provisioning
Oracle Landscape

6. 6
Strategize GCC VAT Enablement - Triniti Approach
GCC VAT Registration
Q4-2017
Registrations are currently
open, Business is expected to
register with the FTA and get
the VAT registration number.
Planning & Preparation
Align business users and pull
up tax implementation team.
Project Execution Plan and
Data Gathering worksheets,
reporting recalibaration.
Training & UAT
Train the power users, replay
configurations to setup UAT
environment, automate functional
testing with reliability for the
identified business scenarios
using UI RnR automation.
Scoping & Sizing
Articulate the scope of VAT
applicability, No. of Entities
& Applications impacted,
industry specific assessment
Setups and CRP
Record ebTax configurations in
CRP environment, auto generate
BR100 using Triniti’s proprietary
automation tool – UI RnR
Launch & Support
Replay setups to ensure error
free PROD environment. All
set to transact in VAT enabled
regime, period end support

7. 7
VAT SET GO with Triniti UI RnR Automation
ebTax Setups UI RnR Automated
Tax Regime ✓
Tax ✓
Tax Status ✓
Tax Recovery Rates ✓
Tax Jurisdiction ✓
Tax Rates ✓
Tax Rules ✓
Configuration Tax Options ✓
Application Tax Options ✓
• Triniti UI RnR automation is attempted to improve on the Time
Factor (Project and User time) and Reliability factor during the
implementation cycle.
• Single point of data entry through excel look like worksheets for all
the data required for configuration and testing.
• Achieve accuracy with overall 90% automation by avoiding the
usual scenario of setting up and testing same thing forever.
• Detailed document (BR100) generation capability at the
configuration save points along with screenshots.
• Audit Trail of data used at the time of configuration and testing.
ConfigurationSetup Data TestingGenerate BR100 UAT Sign OffTesting Data

8. 8
The Automation Difference
CRP Setups
1st Entity
CRP Setups
Subsequent Entities
CRP Testing UAT Setups UAT Documentation PROD Setup
Manual 1 1 2 2 2 1 1
UI RnR 1 0.2 1 0.5 1 0 0.2
0
0.5
1
1.5
2
2.5
DURATION(TIMEUNITS)
Manual vs Automation Statistics Achieve almost
60% time reduction
with Triniti UI RnR

9. 9
Unique capability to complete the Oracle GCC VAT
enablement within shortest possible time frame
using our proprietary UI RnR automation tool
Dedicated team of experts with VAT implementation
expertise to understand regulatory requirements,
master data changes,etc for smoother transition
Post production support to specifically address
the period end closure, resolve issues, VAT
assessment, return filing,etc
Packaged implementation suite including
recalibration as well as development of new reports
for compliance, tax assessment and filing purposes
Comprehensive training and hand holding for
power users from Finance and Tax department
while transitioning to the new VAT regime
Triniti Advantage

10. 10
VAT Applicability
in GCC
VAT Applicability in GCC effective from
01.01.2018
Supply of Goods/
Services
5% Rate 0% Rate Exempt
· Collect VAT on outward
supply
· Entitled to claim VAT
paid on purchases(Input
VAT)
· Couldn’t Collect VAT on
outward supply
· Entitled to claim input
tax paid on purchases as
refund from Authorities.
· Exempted to collect
VAT on outward supply
· Couldn’t claim input
tax paid on purchases
as refund from
Authorities

11. 11
VAT Netting
Solution Offered
by EB Tax
EB Tax Standard
Transaction Flow
AP/AR
VAT Invoice
created
For taxable
supply
received from
Registered
Supplier
AP AR
Recoverable/Non
Recoverable
We would
consider VAT
paid as Tax
asset and
adjust against
VAT payment
Recoverable Tax
We would
consider VAT
paid as Tax
expense and
add to Good/
Service cost.
Non Recoverable Tax
EB Tax engine
will calculate
applicable
Taxes while
creating AR
Invoice in EBS
We would
consider VAT
collected as
Tax Liability
Example:
Item Charge A/c Dr 100
Tax Recoverable A/c Dr 5
Liability A/c Cr 105
Accounting Entry
Example:
Item Charge A/c Dr 105
Liability A/c Cr 105
Accounting Entry
Example:
Receivable Account A/c Dr 126
Revenue A/c Cr 120
Tax Liability A/c Cr 6
Accounting Entry
Netting at the end of Tax Period.
Reconcile and Determine the Net
Liability or Refund.
Tax Payable/Refund=Tax
Collected(AR)-Tax Paid(AP)
Create manual AP invoice
against Tax Authorities
for Tax payment
Tax
Payable/
Refund
Payable
Create manual AR invoice
against Tax Authorities
for Refund accountingRefund
End

12. 12
Reverse Charge
on Imports from
outside GCC
States
Key Notes:
1) Reverse charge mechanism applied when registered person import Goods/Services from Outside GCC States.
2) Import VAT is in addition to applicable import duty.
3) GCC State may allow the importer to pay and recover the import VAT at same time to mitigate cash flow
impact.
4) EBS Offset Tax calculates and records negative tax liability in Payables for reverse charges.
Import of
Goods/
Services
Reverse Charge @
Standard VAT 5%
Offset Tax with negative
(-) VAT@5%
End

13. CONTACT US
408-659-7752
408-659-7764
info@triniti.com
United States Office
Triniti Corporation
2001 Gateway Place Suite 425E
San Jose, CA 95110
India Office
Triniti Advanced Software Pvt. Ltd.
1 St Floor ; 1-8-301 To 303,Ashoka My Home Chambers, S P Road
Hyderabad, Telangana 500003
(91) 40 27893939
(91) 40 66723800