VAT Middle East

VAT Middle EastOnly months remained until all the companies in the Middle East region become obliged to implement VAT tax their operations (VAT Middle East).
Based on Federal Decree-Law VAT for UAE is ‘A TAX that imposed on the import and supply of Goods and Services at each stage of production and distribution, including Deemed Supply.’

“It will be really challenging start of New Year. Only few accountants in Dubai know what the VAT is about. There is some kind of ambiguity how to handle it.”
– Financial Controller in the global production company from Dubai.

It will be really difficult situation for all the companies as nobody (business or IT) ever worked with VAT in the region before.
As with all the new processes companies should carefully prepare themselves into this big change. Financial controllers should gain knowledge to be able to report tax into the government properly as there might be fined if done incorrectly or not on time.
SAP system is perfect tool to manage VAT processes. Most of the global companies in the European region and America’s without issues manage Tax processes. If one gets to know the idea, it’s pretty simple activity to manage for Tax controllers, however nobody has to be too optimistic when it comes to implementation of tax.

 “Definetely help is needed. We have government support but that’s not enough.
We want to learn from the best. BPX is that kind of a company.” 
– Tax Controller from Saudi Arabia

Companies has many processes, some products may be tax exempt, some can have different tax rate base on the country where it will be sold. Implementation process must be managed properly and with the right level of knowledge.
What is important to remember when implementing tax:


  • PEOPLE – Make sure you have the right team. IT must work closely with business users to manage all the processes. Make sure everybody understand what has to be done and who does what

  • TIME – Design your project plan according to legal requirements

  • TECHNOLOGY – Check if your system has the right level of exhancements , check if you don’t have any showstoppers (like. System freeze)

  • TOOLS – Prepare and make sure you know the tools you will be using

  • REGULATIONS – Read carefully all the newly presented Laws for each country. All the GCC will implement tax but there might be some differences per country


  • Prepare list of as-is, don’t forget about exceptional cases ( returns, remmitance, debit notes etc)

  • Apply tax steps to each process.

  • Prepare to-bes

  • Transform business processes into IT

  • Inform all the stakeholders about incoming changes. Ask for approvals if needed

  • Design ‘check points’ for each stage, also for the post-go live check.

  • Don’t forget asses risks and prepare plan B.

  • Remember about reporting needs

  • Don’t forget about security

  • If you are global company remember other units must prepare for changes as well.


  • Remember it’s year end- your Financial team will be busy with year close. Make sure they have time and not too much on them during this busy time.

  • Don’t forget that each invoice you print must have all the details about VAT: Tax number, tax rate etc.

  • Prepare trainings from business and IT perspective.

  • Test, test, test! Everything until you feel confident and ready for changes

  • Implement changes but be sure they won’t negatively impact other processes.


  • Start slowly. Check first processes.

  • Make sure you have everything ready for the period close

  • Don’t release project team too quickly. Let them help at the beginning.

How can we help? Show

We are group of consultants that has done more than 100 projects where tax was always implemented.
We not only know how to do it IT wise but also know business context. We have in our team Solution Architects but also Fuctional Experts and BPOs.
Few of our consultants took part in the project of preparing SAP tool for the recent changes in the tax regulations in Poland. We did couple of Infor projects related with Tax as well. Almost every Sales and Purchases process within European union is tax applicable, therefore for BPX consultants Tax is something that cannot be missed, every consultant had experience with VAT.
Also, not forgetting about reporting- our QlikView team already prepared tools that allows Senior Management track Input and Output tax and all the related legal reports ( financial statements, VAT reports, Intrastat and so on).

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Anna Saczuk | vice CEO & Global CFO
Mobile: +48 512 00 32 75

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