Role of Technologies in Business Adaptation to VAT. 17 April 2017

Transcription

1 Role of Technologies in Business Adaptation to VAT 17 April 2017

2 What Do I Mean Saying Technologies? Servers & Clouds Software Gadgets Web Portals 2

3 What Do I Mean Saying Technologies? ERP and Accounting Software Government E-service Tools 3

4 Contents Requirements Technologies Help to Meet What you need to be prepared for How to deal with that successfully What will happen if you fail Technology Part Components What systems and tools can help you What systems and tools will be mandatory to use Preparation for VAT Implementation Current situation evaluation Required actions Postimplementation Stage Overview What to keep in mind 4

5 Requirements Which technologies can help you to meet 5

6 Requirements Keep all VAT related transactions in the right order Keep historical data of all the VAT related transactions Calculate difference between VAT input and output properly Be able to provide reports requested for audit Have invoice and credit note forms in accordance to the local standards Exchange with the tax authority 6

7 Keep Transactions in Right Order All VAT related documents need to be kept properly You need to have constant and easy access to those documents Hard copies of the documents should match transactions in your ERP 7

8 Keep Historical Data of VAT Related Transactions Your IT system should be reliable You should backup your data regularly and define backup keeping policy 8

9 Calculate Difference Between VAT Input and Output Properly Calculate VAT input for the period properly Calculate VAT output for the period properly Calculate the difference of VAT input and output for the period properly 9

10 Be Able to Provide Reports Required for Audit Your system needs to be able to prepare operational reports with the details requested Process of providing data in a form of reports needs to be easy Information in the system needs to match hard copies of the documents 10

11 Have Invoice and Credit Note Forms in Accordance to Local Standards Forms/templates of invoices and credit notes will have to include required fields? Probably you will have to issue special forms for VAT purpose 11

12 Exchange with Tax Authority All reports must be provided to the tax authority on time? Probably you will be submitting all the reports via an online portal or a special software? Probably you will have to be generating or preparing reports in a strictly defined format 12

13 VAT related transactions are NOT in the right order Understatement of output tax / overstatement of input tax Fine NO historical data Inability to prove VAT return Fine Difference between VAT input and output calculated NOT right Incorrect return Fine 13

14 NOT able to provide reports for audit Time Expenses Invoice or credit note forms are NOT correct Customers stop working with you Loss Exchange with the tax authority NOT made Late report submission Fine 14

15 The worse prepared you are, the more money you will lose 15

16 Technology Part Components 16

17 Technology Part Components ERP and Other Software Tax Engine Reporting Tools E-service 17

18 ERP & Other Software It might be: ERP software POS software Software for e-commerce Any other software Need to be up to date + native tax engine 18

19 Tax Engine Includes local rates and rules Integrated with ERP or other software VAT compliance reporting 19

20 Reporting Tools Consolidate data from various sources Need to support the updated software versions Need to work in compliance with local VAT rules 20

21 E-service? Probably can be integrated with ERP systems? Probably can be integrated with tax engines 21

22 Preparation for VAT Implementation What you need to do before 1 January

23 Current Situation Evaluation Do you have ERP or accounting software Yes No 23

24 You DON T Have ERP or Accounting Software To Do: Develop business processes Choose a system provider Choose a type of hosting (cloud/self-hosted) Implement the software chosen Integrate the software you have with each other Make sure users trained 24

25 You DO Have ERP or Accounting Software To Do: Make sure all your software will support the local VAT standards Clarify how the process of updating will be made and check how long it will take Plan all related expenses Review your master data Make sure that your support partner is reliable 25

26 Stage 1 Stage 2 Stage 3 Stage 4 Design & Development Implementation & Testing by Developers User Training Testing by End- Users Short Scenario: 6 months Stage 1 Stage 2 Stage 3 Stage 4 Today Middle of October Long Scenario: 10 months Stage 1 Stage 2 Stage 3 Stage 4 Today 1 January 2018 Middle of February 26

27 Postimplementation Stage What you will have to do after implementation done and staff trained 27

28 Companies Think VAT Implementation Will Look Like This VAT Rules Implementation Software & Processes Development Working Staff Training 28

29 But in Reality It Will Look Like This VAT Rules Implementation Software & Processes Development Working Staff Training 29

30 You Should Always Be Sure That: Your staff is aware of up to date rules, upcoming changes and their impact on your business processes Your IT systems are up to date and all the processes work in accordance to the requirements from the date of implementation 30

31 Thank you Evgenii Podborskii Head of Automation First BIT Middle East , epodborskiy@firstbit.ae