Discussion Material - Dubai...
Transcript of Discussion Material - Dubai...
Impact of VAT on cash flowsDiscussion Material
Millennial PartnersPeople | Process | Technology
A limited liability free zone company / establishment incorporated pursuant to the rules & regulations of Ras Al Khaimah Fee Trade Zone Authority
WHAT SETS US APART
Our principals have a strong track record of having previously delivered on many large scale business
transformation and research assignments for organizations in North America, Middle East, and the South East
Asia.
Our core focus remains providing hands-on consulting services in helping clients make effective decisions,
achieve complex organizational change with elements entailing people, processes and technology.
We remain fully committed to understanding leadership’s vision for a change through deeper c-suite
engagement. Thereafter, we engage all relevant stakeholders across the hierarchy and build cross-functional
teams to steer effective execution and change towards desired objectives.
Track
record
Core focus
Engagement
Methodology
Based on client’s feedback, our work product and its quality is deemed to be at par with leading global
professional services firms and our role then evolves into that of client’s trusted advisor.Quality
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Research & Strategy
Market Research
(primary & secondary)
Feasibility Studies
Benchmarking Studies
Strategic Planning
Go-To-Market Strategy
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Business Transformation
Business Process Re-engineering
Sales & Marketing transformation
Change management (PMO support)
Performance Management
Requirements Gathering
Fit-Gap Analysis
Technology Optimization (Evaluation & Selection)
SERVICE OFFERINGS
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END-TO-END TRANSFORMATION
Value-Added Tax
VAT Impact assessment
Design of VAT blueprint
VAT compliant IT readiness
Staff training
VAT registration and filing
On-going review and
monitoring
Revenue
The VAT exclusive business income arising in a VAT accounting period
Output tax
The VAT properly due in relation to outputs
Consideration
Consideration is deemed to be inclusive of any VAT properly due, whether or not VAT has been separately charged
THE MECHANICS OF VAT – OUTPUTS AND OUTPUT TAX
Inputs
The VAT exclusive value of external costs incurred by a business excludes:
• Salaries
• Inter-departmental charges within a taxable person made for accounting purposes
Input tax
• The proportion of VAT incurred on inputs which the business is entitled to recover
• The proportion of import VAT incurred which the business is entitled to recover
THE MECHANICS OF VAT – INPUTS AND INPUT TAX
Cash and cash flow
VAT payable before it is collected from the customer
The cost of irrecoverable VAT Input tax on major
purchases – the relationship between the payment of VAT to the supplier and its recovery as input tax
Budgeting to include irrecoverable VAT into project costing
VAT AS A STRATEGIC BUSINESS ISSUE
VAT IN CONTRACTS
Failure to include VAT as a contract term has become a significant and costly issue
Contracts silenton VAT are generally held to be VAT inclusive
Audit, Reporting And Corporate Governance
Wider financial risk of VAT errors
Review and actively manage VAT risks
VAT AS A STRATEGIC BUSINESS ISSUE
Begin to plan for its introduction
Consider the application of the VAT provisions to your business
Train personnel at all levels to consider the effect of VAT on their role
Review and develop VAT compliant accounting systems
YOUR DESIRED VAT STRATEGY
Outsource VAT function
Our cross-functional teamshave experience in accounting(incl. VAT), finance,operations, process re-engineering, informationsystems evaluation andimplementations and havepreviously delivered audit,compliance, process and ITtransformation assignmentsin the VAT regimes overseas.
1• Planning & Mobilization
2• Impact Assessment & Design
3• Implementation & Reconfiguration
4• On-going review & Monitoring
MILLENNIAL’S VAT FRAMEWORKIMPLEMENTATION PHASES
Meeting with client for awareness building and expectations
Assessing broad business impact
Scoping Key Deliverables Shaping the Project
Roadmap Proposal formulation Client’s Approval
Business & Fiscal impact modeling
Gap analysis to assess people, process & system changes (current state)
Consider alternatives for VAT optimization
Design VAT approach Structure & Process (future
state) Implementation plan in
conjunction with stakeholder
• Implementation assistance• Trial runs & testing and review
of controls & processes –
learning & alignment
• Training & Communication with the employees
• Registration with FTA
• Post implementation review• Coordination with FTA
for compliance matters
• VAT compliance practices
• Monitor new developments
2 -3 weeks* 7-8 Weeks* 5-6 weeks* 5-6 Weeks*
• Road mapping for the VAT implementation
• VAT readiness assessment
VAT blueprint
Finalized ‘target operating model’
• Optimize Implementation plan
• IT implementation oversight• VAT trainings
• VAT Compliance Review
Ste
ps
inv
olv
ed
Planning & Mobilization Implementation &
Reconfiguration
On-going
review & Monitoring
Impact Assessment
& DesignPh
ase
Ste
ps
Tim
elin
es
Ou
tco
me
s
*
VAT FRAMEWORK: IMPLEMENTATION PHASES
Process Gap analysisProcure to payOrder to cashDocument retention Internal Controls
Chart of accounts
Financial analysis
FP&A
Financial & Tax
Reporting
VAT training
Organization
structure
VAT registrations
Transition provisions
Returns filing
• Terms & conditions
• Negotiations
• Policy reviews
Procurement
guidelines
Domestic vs.
Import comparison
System enhancements
Auditability
Automation
Taxpayer Services
Data exchange
Customer awareness
Customer / Service
segmentation
Business
Process
Accounting
& Analytics
People
ChangeManagement
ComplianceContracts &
Policies
Information Systems
Customer
orientation
Supply Chain
VAT IMPACT & DEVELOPMENTAL AREAS
VATImpact & developmental areas
Covering key elements of people, process & technologyOur ability to providetransformation focusedadvisory covers allaspects of the VAT impactand falls within the threekey elements of people,process and technology.
Process Technology
People
CLIENTS: MANAGEMENT CONSULTINGDIVERSE RANGE OF INDUSTRIES SERVED IN THE PAST
MA
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W
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Banking
Construction
Electronics
Energy & Utilities
Food & beverages
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FMCG
Education
Manufacturing
Oil & Gas
Healthcare
Government
Retail
Prof. Services
Technology
Telecom
INDUSTRIES SERVEDEXPERIENCE ACROSS A WIDE RANGE OF VERTICALS INCLUDING GOVERNNMENT, ENERGY, RETAIL, REAL
ESTATE AND FMCG
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MILLENNIAL PARTNERS FZE
Boulevard Plaza, Tower 2 (Floor 22nd)
Mohd Bin Rashid Blvd
Dubai, UAE
P.O. BOX 323355
W: www.millennial.ae
ADDRESS & CONTACT HERE’S HOW TO GET IN TOUCH WITH US…
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