BearingPoint will provide a VAT engine capable to calculate, book and report VAT for companies in the Gulf States.
Zurich/Dubai, August 31, 2017 — Earlier in 2017, the Member States of the Gulf Cooperation Council (GCC) have signed the Unified VAT Agreement for the GCC. Based on this treaty, each of the six Member States (United Arab Emirates (UAE), Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar, State of Kuwait) will implement its own legislation. Currently the UAE government is planning to introduce the VAT from January 2018.
All affected businesses are currently analysing the impact on their systems and processes in order to be ready to calculate, book and report VAT on goods and services in time. There are in principle two broad options to implement VAT: Either a VAT calculation scheme is implemented within the various source systems where goods and services are processed or a central VAT engine connected to the impacted source and accounting systems is implemented.
BearingPoint is currently developing a VAT module on the basis of its proven real-time calculation platform EasyTax to support those companies opting for the implementation of a central VAT engine. Currently several “proof of concepts” with companies in the UAE are performed. Along with its tax calculation engine, it features a MQ-based, real-time booking engine and a reporting engine, all linked by an extensive, proven data model.
“While many of the impacted companies currently focus their activities on impact and requirements analysis, only few of them have yet concrete plans for the technological implementation of the new VAT regime. EasyTax is an attractive solution for impacted companies that are looking for a centralized and fast track implementation approach,” says Ronald Frey, Partner at BearingPoint.
To help our clients to meet the tight timeline, the VAT module offering will be brought to the market as Software as a Service (SaaS) hosted in the UAE. The offering spans from software maintenance, hosting and incident management up to full application support and operation.
An important differentiator of BearingPoint’s EasyTax solution is that it comes with the full set of tax rules implemented and that future updates of rules and forms are an integral part of the EasyTax maintenance offering. For this BearingPoint works closely with its Big Four tax advisory partners to keep the software up to date in a constantly changing regulatory environment.
The EasyTax solution
EasyTax is BearingPoint’s standard software solution for producing country specific tax reports enabling financial institutions to provide their clients with a service to ease their tax filing duties. The solution offers a range of country specific reporting modules and services focusing on tax law. More than 80 financial institutions worldwide already produce tax reports with EasyTax for their clients. EasyTax clients include private and wealth management banks, family offices, retail banks, banking package providers and tax reporting service providers. The solution produces high quality, jurisdiction-specific tax reports and already covers more than 20 jurisdictions in Africa, Europe and Latin America.
EasyTax offers a range of country specific reporting modules and services focusing on tax law, including: