IDEA GRAPH J 0 VAT and IT: Tech solution could make process easy erie Suelo Inetustry inelghtDual Fed en June 10, 2077 ILast updated on June 10, 2017 st 04.26 pm \Wan ine impending VAT rollout inthe UAE in just under seven mortns, there's much 10 discuss about how technology could suppor businesses, revenue offclals and taxpayers. “There are wo ways in hich tecmnology airacts VAT. The mst snow taxpayers can apely tecrnology to help celculate the tx ‘oue anatie me necetsary returns. Te S2cond Ie Now Tectnelogy can susport revenue aurnortes in collecting the tax and {uattng. No doubt mat newly Implemented VAT systems wil De prone to rewsions, as authorttes 120k to steamine VAT {udts, morove collectons, identity fraud, and simply mings. Those changes wil be challenging 10 keep up wit for bow ta lomicers ana taxpayers. technology can respond quecky to me changes, all panies invoived will Denett. Efficient processes ‘Technology wil be widely used when VAT Is finally troduced In the country. As such, fexlty on the partof tx offcers and taxcoyers nil be critical to successful mplementaton. Understanding VAT i all bout effclent processes, good practice - sch as running spot-checks 1a ncure ihe company remains compliant - and, above all, nownng when and wher2 to find ihe ght information, \woe-ceses and mobile colutons couls ago come n nana, a¢ one could photograpn recelptestragnt onto a smartonone and center expenses into @ mobile app. This not only saves tme, Dut algo Cuts down on repettive tks, ‘Automatod solutions could ale Gave the admin team time wasted in checing receipts and inputtng bac information. And ‘because all expenses data is consolldeted In one place, k cou also provide valuable insight into sending trends and where sevings can be made. Finaly, anc perhaps most Important, t wil prepare the information correctly for submission to the Federal Tax Authorty. Compliance burden ‘Our workshons heve also sought to dispel fee's that VAT would be an insurmountable administratve ard comalance burcen for UAE businesses. I's Important to rote that tectnologie! solutions wont meke compliance burdens disappear, but they could signifcently ease the proces. ‘wan tne Federal Tax Autnonty coking to make sure tnt all elevant enttes comaly withthe regulations, I pays 19 pro- ‘2ctvaly invest in VAT. Ths snouts thus ea Qusinesses to cereruly consider tne adcpton of fecanology for tne managemant (of VAT. The best bet however, Is 10 seek ine services ofa professional advsory frm to manage Tel’ VAT obligatons, as Te Ccomplacties of ensacton flo, completes of supply chan, speci GCC and local UAE VAT regulations require In-dectn knowledge of the VAT laws, generating otherwise signicant rss forthe business. The effort inyoved in expensing arc reclaiming VAT is onerous particular for smal Dusinacs overs, bur professional Tm are thereto ease the burden.Signiicentrske Inthe same vein, tis exoected the Implementation of the VAT wil brng new risks to businesses. Therefore, iis essential for ‘me nnance team 10 understand exactly Whether tnelr Business Is exposed to any VAT based risks. One cant corral what be doesn't understand, Ifthe tax-elevant business processes are fuly understood ani properly managed, then potential sk are excludes as much as possible, ‘The folowing rule iskey: the more complex the VAT supply chain, the higher the tax isk Ifthe VAT nies are not applted ‘properly. our company may De étNsk of Incurnng righ fines fr non-compance and beIng cherged tummover besed penalie for mcorrect apeliance of the 5 per cent rete. Your business also runs a rick of presenting invoices that do rt fully comply ‘win tne egal requirements, uch as where the reciplent of the nvelce cannot dad exes stated on the Invoice. he Incorrect tax amount stated on the invoice Is being cue by the sender ofthe Invoice end may also face the risk of VAT-raucL “Thus, having a clear view on VAT sks Is crucial for safely conducting your business. (Our forthcoming workshops - scheduled to commence after the holy month of Ramadan and Eld holidays - wll cover the rot [problematic aspects of VAT, such as rate ciferentation and exemptions, ie scope for non-compliance, and ciMicutes ‘opplying VAT in the context of cross‘zorde trade ocross the GCC. The ter ts Crowe Horwath’s VAT Services Teem Leader Views expressed are his own and do not reflect the newspaper's poly.