FACTS - VAT Initiative

1. FACTS, leading provider of ERP & HCM solution across industries

2. Facts about FACTS Successfully completed 15+ years in the market. Direct from creators of the software, and not through channel partners or third party implementers. Modelled with global solutions like Microsoft dynamics Axapta (we have Axapta implementation division) 5,000+ users spreading from small, medium to large enterprises like McDonalds, Lufthansa, Bulgari, Bose, Nikon, Adani, 7Eleven, Circle K, Shapoorji Pallonji are few to name. We have strong local presence, 50+ plus developers based in our HQ here in Dubai. Strong client references and solid client retention. • • • • • •

3. VAT IN GCC

4. What is VAT ???

5. WHY VAT ??? Source of Revenue: •  Expected to generate Dh12 billion in the first year  Second year revenue are estimated between Dh18 to Dh20 billion • IMF & World bank Recommendation • Oil Economy • Diversification • Transparency into UAE business

6. VAT Consensus in street VAT will be effective from 01st Jan 2018 In month of October 2017, final draft will be issued 5% VAT will be levied across GCC Except food items (100 items) and everything will be subject to tax In Phase 1 – Mandatory for Business turnover Dh3.75m (Registration) Optional for Business turnover range Dh1.87m till Dh3.7m • In Phase 2 – Compulsory registration and compliance • • • • •

9. Zero vs Exempt VAT Input VAT Output VAT Sales Purchases Final Consumer

10. Will it affect my Business Margin ???

11. Do I need to Prepare for VAT ???

12. Steps for Compliance Phase1: Plan & Analyze - Best Practice: VAT designated Team Phase 2 : Assess the Impact - Best Practice: Prepare an issues log Phase 3: Implementation - Best Practice: Document the changes Phase 4: Go Live - Best Practice: Educate the stakeholders

13. What should business be doing Phase1: Plan & Analyze • Identify the project resource • Understand the ‘as is situation’ • Asses the impact of VAT Best Practice: VAT designated Team to asses the impact and lay ground work for successful compliance and resource allocation.

14. Phase 1 – Activity Work products:- Project plans – Resource plan – Roles and responsibility matrix – Communications strategy and materials VAT awareness workshop

15. Phase 2 : Assess the Impact • Map supply chain processes and transaction flow to VAT requirement • Review legislation and assess impact • Model input tax credit allocation • Assess IT impact • Review sample contract • Debrief • Help prepare an implementation plan Best Practice: Prepare an issues log to help prioritize key issues that need to be addressed during implementation

16. Phase 2 - Activity Work products:- High level impact assessment – Presentation to senior management Transaction maps – Business process impact requirements and matrix Contract review report – Overview of impact and high level resolution plan – Recommendation of VAT clauses Legislation review – VAT issues and ambiguities log VAT approach recommendations – Documentation of implementation decision points Tax credit allocation model – Impact assessment model IT impact assessment report – Solution architecture design – Functional ERP requirements – Impact on customizations – Master data assessment – Reporting requirements

17. Phase 3: Implementation • Prepare and assist with implementation based on legislation published • Check IT VAT Solution Design • Check with IT Implementation Support • Check with VAT registration • Conduct VAT Technical Training Best Practice: Document the changes for Audit & Compliance

18. Phase 3 - Activity Work products:- Implementation plan & User acceptance testing – User acceptance test plan – User acceptance test scripts – User acceptance report – Tax reporting and filing test Training and VAT manual – Reviewed training manuals – VAT process maps and manuals Registration – Registration completion report and review

19. Phase 4: Go Live • Test Exception • Prepare and file VAT returns • Resolve any teething issues • Fine-tune compliance practices Best Practice: Educate the stakeholders on effective changes and document discrepancy Work products:- VAT submission – Assist with - or review - VAT returns prior to submission

20. What are benefits of being VAT ready ??? Maximize VAT recovery on business inputs Reduce adverse impact on cash flow Ensure compliance with VAT obligations and reporting Minimize risk of fines, penalties and reputation damage Be prepared for VAT audit / Financial audit • • • • •

21. Where do we fit into ??? FACTS Computer Software House will be your Software partner to roll through the uncharted territory. Leave System related readiness on us, with regards to VAT implementation. PRODUCT READINESS DEMO

22. Why Trust us with VAT      We have track record of winning for past 15+ years with more than 500 companies in GCC 50 + Team strength with Microsoft Certification for technical and functional expertise Road-map in place to implement VAT across your organization Access to Certified Accountant\Legal Adviser network to ensure compliance & process integrity Marker leader for customization of solution to meet different process and organization structure VAT development team in place to roll-out the update to ensure compliance 

23. Our Unique Offering Are you still using ?? • software that does not meet your business needs • Using solution by vendor that no longer exist in business/GCC for support We have attractive offers for the replacements of your existing Business Management Solution that is probably a bottleneck for your organization’s growth/legal compliance. Data migration, Training and Support for the VAT / legacy system replacement

24. THANK YOU FOR LISTENING !!!