VAT in GCC countries

A major challenge behind the countries implementing VAT is to have the proper information, robust technical systems which gives comfort towards financial and tax governance along with compliance, and other areas in order to meet all requirements.

Ideally, after introduction of VAT, businesses study reveal that their entire Eco-system ex. their vendors and customer are also part of their business. VAT is playing a vital role between the supply chains.

 Supply chain is the key ingredient in VAT, Microsoft Dynamics ERP software tailors the workflow process, manages inventory, helps to pursue new market opportunities, improves responsiveness, and provides efficient partner collaboration. 

Expand manufacturing capabilities with the automation of Microsoft Dynamic Supply Chain Management (SCM) that helps to reduce redundant tasks, increases accuracy, and aids in minimizing handling time and overhead.

Businesses cannot took decisions unanimous as buyer can claim credit only based on the supplier invoice. Effectively, VAT stitches the entire supply chain with each other and makes the businesses flow smoothly.

 In most of the cases, in absence of specific clarification, the dependency also leads to difference of opinion between supplier and buyer. For eg. how distributor should give extra incentive/ discount for higher sales, whether through credit note by suppler or on a tax invoice by distributor.

One needs to mitigate disputes! Thus, it’s essential that business entities identify such likely instances and proactively take steps.