VAT training program focuses on VAT understanding, recording and filing of VAT return in the most effective way to avoid any penalties for the organization.
Value Added Tax (or VAT) is an indirect tax. Occasionally you might also see it referred to as a type of general consumption tax. In a country which has a VAT, it is imposed on most supplies of goods and services that are bought and sold. VAT is one of the most common types of consumption tax found around the world.
Over 150 countries have implemented VAT (or its equivalent, Goods and Services Tax), including all 29 European Union (EU) members, Canada, New Zealand, Australia, Singapore and Malaysia. A business pays the government the tax that it collects from the customers while it may also receive a refund from the government on tax that it has paid to its suppliers. The net result is that tax receipts to government reflect the ‘value add’ throughout the supply chain. To explain how VAT works we have provided a simple, illustrative example below (based on a VAT rate of 5%)
After completing this course you will be able to:
» Understand VAT concepts in details and its applicable rules in UAE.
» You get understanding of VAT account creation, adding information and manage it for filling.
» You will be able to handle all VAT related matters for your company.
» Describe the way in which VAT operates, particularly in respect of output tax and input tax, in such a way that it remains neutral in its application by businesses.
» Identify how VAT applies to international transactions of both goods and services and how the system allows by ensuring that imports and exports are neither advantaged nor disadvantaged over domestic supplies by applying Double Tax treaty.
» Explain the impact of exemption in VAT and how tax is calculated by businesses that deal in exempt supplies.
» Categorize some of the more important administrative issues that VAT requires.
» Recognize how to plan your VAT balance.
» Identify the risks behind improper VAT management.
WHO CAN DO?
• Managers / Senior Managers|
• Finance Managers
• Finance Controllers
• Internal Auditors
• Cost and Budgeting Managers|
• Sales Managers
• Procurement Managers
• Associate Staff Dealing in Payable and Receivables
MASTER CLASS ON VAT TRAINING PROGRAM – POST IMPLEMENTATION, COMPLIANCE & REGULATIONS
Training Outline (Agenda):
|Scope of Tax|
• Concept of Taxable Supply
• Deemed Supply
• Scope of VAT on imports
• Establishing the responsibility of recording VAT
Supply of Goods & Services
• How to differentiate between Supply of Goods and Supply of Services
• VAT impact on Supply of more than one component
• VAT impact on agency relationship and supplies via agents
• VAT recording on issuance and redemption of Vouchers
• VAT treatment for discounts and subsidies
• What supplies are considered as deemed supplies?
• Free Goods
• Intra-GCC supply of own goods
• Goods for private use of owners and employees
• De-registration effect on unsold goods deemed as supplies
• Under what conditions deemed supplies are not subject to VAT
• When to register for VAT?
• Who should register for VAT?
• Exceptions to VAT registration i.e. when you are not required to register for VAT even if you have taxable supplies
• Mandatory vs Volunteer VAT registration
• Treatment of Capital Assets sale while calculating VAT registration threshold
• VAT registration applicability on non-residents
• The concept of Group VAT registration
Date of Supply Rules
• When to account for VAT as per date of Supply Rules
• What is the date of supply rules under special circumstances
• For consecutive supplies (e.g. construction contracts)
• Supplies through vending machines
• Date of supply for deemed supplies
• Date of supply for vouchers
Place of Supply Rules
• How to establish that place of supply of any goods/services is UAE?
• Place of supply of Goods
• Place of supply of Services
• Place of supply of water and energy
• Place of supply in special cases e.g. implementing state effect
• Place of supply of telecommunication and electronic services
• Place of supply of real state
• Place of supply of transportation services
Value of Supply Rules
• On what amount VAT should be charged under Value of Supply Rules
• Value of Supply
• Value of Import and what is the effect of landed cost components and customs duty
• Value of Supply to Related Parties – special considerations
• Value of Deemed Supply – on what value e.g. free goods to be taxed
• Value of supply in case of discounts and subsidies
Profit Margin Scheme
• What is profit margin scheme
• Who is eligible for profit margin scheme?
• How to calculate VAT on profit margin scheme?
• Recordkeeping requirements for entities registered under profit margin scheme
Zero-rate Supply of Goods & Services
• What is the concept of zero-rating?
• General rules for zero-rated supplies
• What are the zero-rated goods and services?
Industry-wise Impact of Zero-rated Supply of Goods & Services
• Export of goods & Services
• Export of telecom services
• International transport of goods and passenger
• Zero-rating of certain means of transport
• Precious metals (e.g. gold, silver, platinum)
• Treatment of residential building and converted residential buildings
• Charity buildings
• Educational services – higher education vs school education
• Health care services and supply of healthcare products
| VAT Exemptions|
• Treatment of VAT while you are selling exempt items
• Impact of VAT exemption on certain industries
• Residential buildings
• Financial Services
• Bare land
• Local passenger transport
• Exemption on imports and suspension of the VAT
Single & Mixed-use Supply
• The concept of composite supply
• VAT Treatment of supplies of more than one component
Reverse Charge Mechanism and VAT on Imports
• The concept of Reverse Charge Mechanism
• Accounting entries in reverse charge mechanism
• Tax calculation and tax reconciliation under reverse charge mechanism
• The implication of import VAT on intra-GCC transshipments
• VAT on imports by unregistered persons
Designated Zone & It’s VAT Impact
• The concept of Designated Zones
• Designated Zone vs Free Zone
• VAT Treatment on Designated Zone Trade under special circumstances
• Imports in Designated Zones
• Exports from Designated Zones
• Supply of goods from Designated Zones to mainland companies
• Supply of services from Designated Zones to mainland companies
• Supply of goods/services within the same Designated Zone
• Supply of goods/services from one Designated Zone to Another Designated Zone
VAT Calculation & Payment of VAT
• How to calculate final VAT liability/refund
• Recovery of input VAT – what are the conditions
• Disallowed input VAT
• Treatment of input VAT paid before registration
• How Government entities and Charities recover VAT?
• Filing of VAT Return – Procedure & Demo
• Filing of VAT Return
Partial VAT Exemption
• What are partially exempted entities?
• How partial exemption impacts the entity’s eligibility to recover input VAT
• Calculation of partial exemption ratio for recoverable input VAT
• Adjustment of input VAT post recovery in the final tax return
Capital Asset Scheme
• Definition of Capital Assets
• The concept of qualifying assets
• Application of Capital Asset Scheme
• Adjustments required under Capital Asset Scheme
Reversal/Adjustment of Output VAT
• When to reverse/adjust output VAT?
• Mechanism of adjustment of Bad Debts
• Issuance of Tax Credit Note
• The format of Tax Credit Note
Tax Invoice & Tax Credit Note
• Requirements for issuance of Tax Invoice
• Evidence of Supplies to the GCC Implementing States
• Invoice currency, rounding off and 14 days invoice rule
Violations & Penalties
• Administrative penalties
• Tax evasion penalties
• Joint liabilities in case of penalties
• Mandatory records to be maintained under tax laws
• Record keeping for input and output
• Language of records
• Record retention period
TAX AGENT TRAINING PROGRAM
Training Outline (Agenda):
• VAT BACKGROUND|
• DEFINITION OF SUPPLIES
• LIABILITY OF SUPPLY
• ZERO RATING
• VAT EXEMPTION
• DEEMED SUPPLIES
• VAT ESSSENTIALS
• VAT APPLICABILITY LEVEL
• TAXABLE TRANSACTIONS
• DESTINATION PRINCIPLE
• VALUE OF THE SUPPLY
• TIME OF SUPPLY
• VAT LEVY V/S COLLECTIONS
• VAT REGISTRATION
• VAT INVOICING
• VAT COMPUTATION
• REVERSE CHARGE MECHANISIM
• VAT CAPITAL ASSET SCHEME
| • VAT PLANNING|
• INPUT TAX -WHEN TO RECOVER
• PARTIAL EXEMPTION
• VAT RECORDS
• VAT RETURNS
• VAT CHECKLISTS
• ACCOUNTING FOR VAT
• VAT TREATMENT ON BAD DEBTS
• INTERNATIONAL ASPECTS -GOODS
• INTERNATIONAL ASPECTS –SERVICES
• PENALTIES FOR ERRORS AND OMISSIONS
• REFUNDS, REPAYMENTS AND OTHER CHARGES
• THE AUTHORITY POWERS, APPEALS AND ASSESSMENTS
• TRANSFERS OF OWNERSHIP OF A BUSINESS
• VAT GROUPS
• VAT AUDIT
• ROLE OF A TAX AGENT