Value Added Tax (VAT) in Kingdom Saudi Arabia
How to hire a VAT Consultant in Saudi Arabia
A Good VAT Advisor can avoid fines and keep the company operations smooth.
To avoid fines hire experienced VAT Consultants in Saudi Arabia.
Value Added Tax (VAT) in Kingdom Saudi Arabia is something new for the finance, IT, operations, Admin, Human Resources, logistics, marketing and sales and consumers at large.
The only question in minds right now is "How to deal effectively with Value Added Tax (VAT) in Kingdom Saudi Arabia. With the launch of VAT in GCC the companies have already started hiring consultants in all over GCC especially Saudi Arabia and UAE (United Arab Emirates).
Consultants are also approaching organization in their own way to guide them on how to handle VAT complicated issues in Saudi Arabia. Even some of them have developed VAT applications (VAT App, IOS, Andriod) in order to facilitate their clients as a useful tool.
The only question in minds right now is "How to deal effectively with Value Added Tax (VAT) in Kingdom Saudi Arabia. With the launch of VAT in GCC the companies have already started hiring consultants in all over GCC especially Saudi Arabia and UAE (United Arab Emirates).
Consultants are also approaching organization in their own way to guide them on how to handle VAT complicated issues in Saudi Arabia. Even some of them have developed VAT applications (VAT App, IOS, Andriod) in order to facilitate their clients as a useful tool.
Since the taxes are being introduced for the first time in GCC (Gulf Cooperation Council) Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
So it can be fragile on so many levels as for the compliance is concerned. This is where the consultants/ advisors play a vital role in driving the organizations in Kingdom Saudi Arabia in the right direction.
So it can be fragile on so many levels as for the compliance is concerned. This is where the consultants/ advisors play a vital role in driving the organizations in Kingdom Saudi Arabia in the right direction.
Based on my experience in Tax Consultancy Firm, where I worked for 8+ years dealing with 5 kinds of direct and indirect taxes in the country, I have in my opinion the following things should be kept in mind before hiring a VAT Consultant in Saudi Arabia.
Understanding of The VAT Law
The laws sometimes can be tricky at times and can be complicated in matters of handling & managing VAT affairs in any industry inside Saudi Arabia.
It sometimes can also be harmful for Exempt or zero rated industries/ organizations if proper understanding of law is not observed.
It sometimes can also be harmful for Exempt or zero rated industries/ organizations if proper understanding of law is not observed.
A suitable consultant knows the law inside out and can easily advise spontaneously without causing any serious problems for the enterprise.
Although the law is very simple but yet while planning or giving opinion everything should be on table of discussion because any un-wanted mistake/ error/ omission can lead to fines.
Although the law is very simple but yet while planning or giving opinion everything should be on table of discussion because any un-wanted mistake/ error/ omission can lead to fines.
So hire a VAT consultant in Kingdom Saudi Arabia having sound Understanding of VAT Law.
Experienced VAT Consultant
Another requirement in hiring VAT Advisors in Saudi Arabia is the "Experience".
The consultant should be experienced, having experience in Taxes specifically indirect taxes. As VAT will be the first tax to be implemented in Saudi Arabia so there is no point that there would be any previous case studies/ examples/ precedents available, relating to GCC countries, to follow.
But at the same time VAT is not new globally, it is existing for decades. There are approximately 200+ countries where indirect taxes are applicable, which are in majority and there are counties which are still VAT free, countries in the world where indirect taxes are applicable and the tax rate ranges from 0 to 28%.
You can see the VAT Tax rates globally here.
The consultant should be experienced, having experience in Taxes specifically indirect taxes. As VAT will be the first tax to be implemented in Saudi Arabia so there is no point that there would be any previous case studies/ examples/ precedents available, relating to GCC countries, to follow.
But at the same time VAT is not new globally, it is existing for decades. There are approximately 200+ countries where indirect taxes are applicable, which are in majority and there are counties which are still VAT free, countries in the world where indirect taxes are applicable and the tax rate ranges from 0 to 28%.
You can see the VAT Tax rates globally here.
Tech Lover Consultant
If you're hiring consultant in Saudi Arabia make sure the he/ she have love for Technology.
As many of VAT Affectees are aware of that mode of compliance will be Online portal by the Federal Tax Authority from UAE and other will follow the same lead.
Companies will be using online web portal to report, comply, reply to notices, view reports, fill in forms, filing, refund claims and a lot more.
As many of VAT Affectees are aware of that mode of compliance will be Online portal by the Federal Tax Authority from UAE and other will follow the same lead.
Companies will be using online web portal to report, comply, reply to notices, view reports, fill in forms, filing, refund claims and a lot more.
Apart from using the portal for compliance and reporting, the Consultant in order to stay organized, should be able to use other applications available.
Dealing one client is different and having many changes the scenario. So the consultant that you are hiring should be tech lover who can adapt and perfrom seamlessly.
Dealing one client is different and having many changes the scenario. So the consultant that you are hiring should be tech lover who can adapt and perfrom seamlessly.
Focused Approach/ Industry Specific
Another important feature is to understand law on the basis of industry / sector. If the focus of the consultant is on your business goals, model, requirements, dos and donts, operating structure and possible VAT environment then we can say you are in good hands.
If you are looking for a VAT Consultant in GCC then one with sound VAT Knowledge can save the company from unnecessary Fines.
Consultant with Finance Background
VAT Compliance will be a mixture of finance, IT, operations kind of impact. So the consultants/ Consultancy Firm/ VAT Advisor should have expertise in all these fields.
The most important one is Finance as there will be need to change the accounting software with the help of IT expert as accounting for VAT is also another avenue to consider.
The professionals who are already working in GCC specially Saudi Arabia in Finance/ Accounting department have to acquaint themselves the long forgotten fundamentals of indirect taxes, while working in the region, in order to be in the industry and survive at the same time.
VAT (Value Added Tax in Kingdom Saudi Arabia) have everything to do with Finance so remember deal VAT through Finance and Finance through VAT.
The most important one is Finance as there will be need to change the accounting software with the help of IT expert as accounting for VAT is also another avenue to consider.
The professionals who are already working in GCC specially Saudi Arabia in Finance/ Accounting department have to acquaint themselves the long forgotten fundamentals of indirect taxes, while working in the region, in order to be in the industry and survive at the same time.
VAT (Value Added Tax in Kingdom Saudi Arabia) have everything to do with Finance so remember deal VAT through Finance and Finance through VAT.
Impact Analysis & Due Diligence
A VAT Consultant/ VAT Advisor is a complete package is he/ she are able to understand the legislation and can measure its impact on your company's expenses, cash flows, operations necessary to implement the Dear VAT.
The impact assessment may also include assessment of Human Capital, company processes, change in accounting system, estimation of new costs associated with VAT Implementation its management and finally the main item that is COMPLIANCE.
Another ancillary requirement is to check pre-existing contractual obligations of the organization and their impact on VAT implementation and it can affect wide-ranging areas from planning capital expenditure to budgeting as well as staffing requirements.
Hiring a VAT Consultant in Kingdom Saudi Arabia can also be a challenge as to the major spoken language in Saudi Arabia is Arabic so the VAT Advisor better be bilingual.
Hiring a VAT Consultant in Kingdom Saudi Arabia can also be a challenge as to the major spoken language in Saudi Arabia is Arabic so the VAT Advisor better be bilingual.
Calculation & Reporting Challenges and VAT Planning
Planning and reporting plays a vital role in VAT Compliance without hiring new resources a proper planning can save time and money.
A good consultant have resources to plan and report error-free to the client(s). A good Consultant will highlight on how to manage VAT with routine operations and minimum time spent with a goal of zero percent errors & omissions.
A good consultant have resources to plan and report error-free to the client(s). A good Consultant will highlight on how to manage VAT with routine operations and minimum time spent with a goal of zero percent errors & omissions.
How we can help
Our Indirect Tax Team of experts is available in GCC Region to discuss and bring clarity to the specific challenges that your businesses might face in getting yourself ready for VAT. Please contact our indirect tax executives to learn more.
VAT Registration Countdown begins | Hurry Up and Get Registered
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