Value Added Tax (VAT) is the integral part of GDP of any country. The Gulf Cooperation Council (GCC) states have agreed to adopt a unified Value Added Tax (VAT) system in 2018, with the UAE expected to lead VAT introduction by January 2018.
This will require preparing ERP systems to cope with charging, recovering, paying and complying with VAT regimes, impacting all sales and purchase transactions.
IT departments need to start planning how they will ensure a smooth transition to a VAT enabled system. Setting up VAT in a system can be a complex exercise that demands deep specialization and expertise to ensure complete tax compliance.