VAT Implementation

VAT Implementation planning is critical and demands a focused approach since it is linked to the VAT liabilities and compliance. It has a multidimensional impact on your business and has complexities depending on the nature of your business such as Partial Exemption, Reverse Charge, Margin Scheme, VAT Grouping, Composite Supply of Goods and Services. VAT Implementation will get further complicated due to different VAT Implementation timelines by the GCC Member States. VAT implementation is a Change Management Project, if not executed accurately it has financial repercussions in terms of loss of cash flow (Input Tax Credit), penalties and fines and even criminal/civil liabilities. It requires the involvement of the key stakeholders and continuous awareness and training across the organization.

Our team at Haynes Path believe that an effective VAT implementation will not only require VAT expertise and experience but also a multi-disciplinary team with specialized industries knowledge (within and outside GCC) and diverse verticals exposure - systems and technology, people and processes, financial reporting & analysis and project management capabilities.

The VAT Implementation project embraces the following:

Key Stakeholders of Implementation project

  • Customers
  • Vendors
  • Employees
  • Regulators
  • Shareholders

Change Management project

As a business, you should consider establishing a Steering Committee comprising of the senior management within your organization to oversee the implementation project. This change management project is managed by Haynes Path team with professional project management practices that include Project charter, project manager, defined roles and responsibilities of team members, project plan, timelines, costs and benefits, detailed list of activities, and approval mechanism.

Phased Implementation

A phased VAT implementation approach is depicted below along with the description of key activities under each stage of implementation: