Microsoft Dynamics AX : Valued Added Tax (VAT) for GCC

vataxExplanation

Hello All,

As we know that all GCC countries are planning to implement VAT  starting from Jan 2018 and many companies have already started their home work to compliance there business with the VAT plus also companies are registering there VAT number for their corresponding VAT authority.

To understand the VAT click the below link :

https://www.mof.gov.ae/En/budget/Pages/VATQuestions.aspx

As far as Dynamics AX is concerned, what i have researched so far is that there are two options we can do to implement VAT in GCC countries.

  1. Enabled the country specific VAT , which can be used to other GCC countries, like AX has a specific VAT version for Indian localized, so what we can do is to enabled all that features for GCC as well and this can be done by some AX technical guy by cross – referencing and going through all the object first within the Indian specific functionality.
  2. Secondly we can utilize the existing Sales tax feature to be used for our VAT scenarios. I am still doubtful whether this can be full utilize covering all scenarios.

My question on Microsoft community you can view:

https://community.dynamics.com/ax/f/33/p/251622/703150

Finally There is a nice guideline for VAT setup for GCC countries. This document used Ax 2009 version + UK localized, however can be used as a good starting point for implementing VAT.

https://www.google.com.sa/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ved=0ahUKEwihkrLk4L_WAhUH2RoKHQDlBSkQFgg_MAQ&url=https%3A%2F%2Fmsdnshared.blob.core.windows.net%2Fmedia%2FMSDNBlogsFS%2Fprod.evol.blogs.msdn.com%2FCommunityServer.Components.PostAttachments%2F00%2F10%2F15%2F26%2F18%2FUK%2520VAT%2520Setup%2520Guidelines%2520in%2520AX%25202009.pdf&usg=AFQjCNHHIKIBNxaYyGtTNd7Lv5UrpYIiSw

 

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2 responses to “Microsoft Dynamics AX : Valued Added Tax (VAT) for GCC

  1. Hi…
    I’m still confused with sales tax for purchases from foreign suppliers as they will send the invoices without VAT value but we still owe to pay the VAT value immediately to the customs authority, so the JV generated out of the invoice should be different from purchases of local suppliers. please advise.

    • Yes as per the understanding 1) Customer invoice will be without VAT in case of foreign supplier 2) There will also be another invoice for customs authority and the reason i am seeing is important because this will used as reference doc, at the time of VAT returns as these suppliers invoice are our Input tax.

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