The #1 automated VAT reporting solution can transform your organization in GCC countries including Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates.

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What is Azdan VAT reporting solution for companies in the GCC?

The Gulf Cooperation Council (GCC) – of which the UAE and Qatar are member states along with Saudi Arabia, Kuwait, Bahrain, and Oman – started implementing the Value Added Tax (VAT) in 2018. Each Member State will integrate the regulations into their local law.

Azdan VAT Reporting offers a way to analyze a vast volume of purchase and sale transactions data from different Enterprise Resource Planning (ERP) Systems to automatically populate VAT return reports in the required format as per the Federal Tax Authority (FTA) in all GCC countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. VAT return report can be displayed in PDF format, HTML and Excel format and can be translated into different languages.

How your company can get ready for VAT reporting in the GCC?

The implementation of value-added tax (VAT) could pose some operational issues to many businesses in the Gulf Cooperation Council (GCC) region, especially if they have not taken any action to prepare for the new VAT system, according to industry experts. The good news is our consultants are ready to help you manage all your Value Added Tax seamlessly.

  • However most of the required tasks you need to do are:
    • Your specialized team needs to study the new tax law, examine the impact of VAT on your organization’s operations and modifying your IT systems and business processes.
    • You can order the businesses guide from the government on how to fully comply with VAT once the legislation is issued.
    • Once the legislation is issued, make every effort to align their business model to government reporting and compliance requirements
    • You should be able to reconcile your VAT back to the GL accounts but other than that, all VAT reporting should be done from your transactional data. This means 2 GL codes, one for AP and one for AR is perfectly sufficient.
    • It is better to work through a detailed impact assessment with a trusted business partner to guide your team through the implementation and operation phases.

Azdan VAT Reporting Tool provides one comprehensive solution to generate VAT return report. Zero Level transactions will be imported into the system using data management module. Data management tool can integrate with different source system (Oracle EBS, People Soft, Excel Sheet .. Etc).
VAT Return Report will consist of the following parts:

  • Net VAT Due
    The system calculates how much VAT should be paid to or reimbursed
  • VAT Credit carried forward from Previous Period
    The system calculates the carried forward amount if the Net VAT due amount is negative.
  • Total VAT due for current period
    The system calculates the difference amount between VAT on Sales Items and VAT on Purchases.
  • VAT on Purchase Items/Sales Items
    The system calculates the amount, adjustment, and VAT amount per each Purchase/Sale item based on the Purchase zero level transactions.
  • Amount
    The amount will be the total transaction value of Sales or Purchases. Also, each transaction amount is appropriately mapped to the VAT return report based on the Tax Code ( Example: Exempt, Standard Rate)
  • Adjustments
    The system uses this field if there is a change in circumstances ( e.g., Goods sold in a previous period were returned in the current period ). Also, the user can add an attachment to justify such adjustment.
  • VAT Amount
    The system calculates VAT amount report automatically based on zero level transaction data.

Azdan tax reporting solution encompasses all stages of the tax provision and country-by-country reporting processes including tax automation, tax data collection, tax & accounting calculation and reporting & analysis.

  • Some of Azdan VAT reporting features:
    • Consolidation of the VAT for multiple legal entities under same Tax registration ID
    • Elimination of inter-company transactions
    • Generate tax return reports
    • Calculate all tax proportions
    • Accurate calculations for net tax due or reclaimed according to regulations
    • Workflow for each tax reporting cycle
    • Reporting and analysis
    • Supports multi ERP systems integrations
    • Supports multi language
    • Integration with MS office applications
    • Designed for corporate clients for controlling and reporting vat return report
    • Supports reconciliation between VAT return report and VAT GL accounts