What is VAT ?
Let’s start with the basics. Value-added tax (or VAT) is an indirect tax added to a product’s sales price. It represents a tax on the value added to goods or services throughout their production process. VAT has been a standard source of revenue for governments around the world, in European countries like England, France, and Germany, as well as in Canada, Australia, and many others. Now, for the first time, companies in the GCC will have to collect VAT.
Impact of VAT
Value Added Tax (VAT) is not just an accounting or tax challenge, it impacts every part of your business with regard to cash flow, costing of capital, pricing of products and services, financial reporting, tax accounting, compliance processes, supply chain, procurement and contracting, and all technology currently enabling this ecosystem. In addition, there will be significant configuration needs in your existing Oracle ERP system to meet all these changes.