Hi. This goes out to all ERPNext implementors in the Arabian Gulf countries. As most of you would be aware that by 2018 VAT is to be implemented mostly across all countries and it is the first time a direct tax to consumers is being rolled out. What I would like to know from the experts is as below.
- Have you attend any seminar from audit companies on the tax method and reporting. I missed out last week when my audit company held one. Please post relevant information that you received from it.
- Items/categories that would come under this?
- Timeline for reporting and depositing VAT with relevant authorities.
- Modification to ERPNext to automatically create taxation rules.
My understanding is that VAT is set at 5% and it needs to be deposited within 40 or 45 days of the sale irrespective of mode of sale; cash or credit. This will create a problem of sort for companies selling on long term credi 60 days 90 days etc.
Essential food items and medication will be exempted. VAT maybe applicable on realty (home and offices) rent collection as well, not confirmed as yet.
Experts from other countries who have tackled complex tax reporting can assist as well. Am sure the community will be helpful as usual.