Value Added Tax is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on businesses as it is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system of partial payments whereby taxable persons (i.e., VAT-registered businesses) deduct from the VAT they have collected the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved. VAT is paid to the revenue authorities by the seller of the goods, who is the "taxable person", but it is actually paid by the buyer to the seller as part of the price. It is thus an indirect tax.
There will be four sessions of 90 minutes each.The focus of each session will be as follows:
- Session 1: Basic Concepts of VAT and how it works.
- Session 2: Practical Examples on how VAT is applied on Goods and Services.
- Session 3: Commercial implications of VAT and how to get prepared.
- Session 4: Lessons learned from other countries on VAT related challenges.
Certified Value Added Tax Professionals.
- Mechanics of VAT calculations and VAT accounting.
- Output and Input VAT.
- The applicable rates of VAT (standard, zero) and which goods and services are taxable.
- Exempt goods and services, and the implications of being an exempt business.
- Partial exemption rules for businesses making both taxable and exempt supplies.
- VAT treatment of import and export, acquisitions of services from non-residents, intra-GCC supplies, and determination of the “place of supply” of goods and services.
- The commercial implications of VAT on businesses
- The administration of VAT, and compliance requirements
- VAT registration.
- How and when to account for VAT.
- The practicalities of recording VAT within an accounting system.
- Generating and maintaining VAT documentation.
- Submission of VAT returns.
- Resource requirements to get ready: human, technical and professional