Value Added Tax (VAT)
An indirect tax imposed at each stage of production and supply is borne by the end consumer, and it is imposed on transactions made on goods and services except as exempted by the implementing regulations.
The impact of Value Added Tax on all economic activities:
(Sales – Marketing – Purchases – Information Technology – Finance & Accounts – Warehouses & Logistics – Human Resources)
- Study the company’s financial system and verify its compatibility with the implementation of VAT system and suggest the required adjustments for the correct implementation.
- Record, classify and process the correct accounting operations for imports related to VAT for each tax period.
- Classification of Sales / Revenue & Cost of Sales / Cost of Revenue in line with VAT law.
- Prepare and process accurate reporting system for periodic VAT.
- Calculate the VAT and disclose it, then transfer it to the General Authority of Zaka and Tax.
- Help the financial department to comply with the responsibilities arising from tax law to avoid imposing penalties on the company.
- Review the tax reports and their conformity with the inputs and outputs and the balance to be transferred to the General Authority of Zaka and Tax.
- Filling tax forms for each tax period and transfer tax within the statutory period.
- Review the standards of selecting the suppliers in line with client’s interest under the implementation of VAT law.
- Review contracts signed with suppliers, service providers and consultants of the company.
- Review the credit policy of clients and suggest solutions to meet the impact of cash flow on the supply chain after registration in VAT.
- Fill and review VAT return through the electronic portal and transfer it to the General Authority of Zaka and Tax during the legal period, these include:
- Review the revenues of the company for each tax period to verify the accuracy of received data on sales invoices and services in accordance with the VAT law, which are subject to tax, exception and exemption, fill VAT return and submit it to the General Authority of Zaka & Tax within the statutory period.
- Review the company’s purchases of goods and services to verify VAT amounts on the purchases invoices and date of purchase, whether deductible or refundable.
- Calculate the tax on imports value and pay it to the General Authority of Zaka and Tax during the statutory period, and follow up the claim within VAT return for the period subsequent to its import.
- Review the company’s financial statements draft to verify the conformity of revenues with the declared returns and discuss any observations thereon.
- Prepare objection letters against the assessments issued by the General Authority of Zaka and Tax if the client considers Zaka and Tax included in these assessments not appropriate, and represent our clients in various objections and appeals committees.
- Assist in preparation of replies to the inquiries of General Authority and the committees concerned with the objection and appeal, whether written or verbal, and review any required information, and approve them before submitting them in the final form.
- If the General Authority requests additional details and information about the accounts of our client for the purpose of finalizing the assessment, inform our clients about how to prepare, review and approve these details and information before submitting them to the General Authority in its final form. Also, in the event that the General Authority conducts a field examination of the accounts of our clients, the inspection process will be monitored and assisted, and we will assist our client in responding to the requests and inquiries of the inspection team in line with the company’s interest and the instructions regulations issued by the General Authority of Zaka and Tax.
- Receive committees’ decrees on behalf of our clients, review and express technical opinion about them.