Value-Added Tax impact across the organisation | ZAWYA MENA Edition

SourceZawya
SectorEconomy
CountryOman

The introduction of the value-added tax (VAT) regime in Oman will not only affect consumers, it will also have an impact on the businesses. VAT will have an impact on virtually all functions within an organisation, including information technology, finance, sales, procurement, legal and human resources.While it is the finance function that usually drives the progress of VAT implementation, the efforts need to be enabled throughout a range of processes and technologies within the organisation. Some of the impacts of VAT across the business functions are discussed below.In larger organisations, business may revert to external tax engines and third-party solutions to automate the compliance process or add efficiency to the determination, consolidation, reporting and VAT analytics processes.Finance and administrationVAT will impose a number of compliance requirements that will constitute an administrative burden for the business. These requirements include obtaining a VAT registration, filing the periodic returns and making payments of VAT due or claiming refunds from the authorities, in addition to maintaining records and documents in accordance with the requirements of the VAT law.

Additionally, a business will have to be ready to attend to tax audits and queries raised by the Tax Authority as well as handle any...read more...