FACTS, leading provider of ERP & HCM solution across industries

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.

VAT IN GCC

What is VAT ???

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

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

Zero vs Exempt VAT

Input VAT Output VAT

Final Consumer

Purchases Sales

Will it affect my Business Margin ???

Do I need to Prepare for VAT ???

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

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.

Work products:- Project plans – Resource plan – Roles and responsibility matrix – Communications strategy and materials VAT awareness workshop

Phase 1 – Activity

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

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

Phase 2 - Activity

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

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

Phase 3 - Activity

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

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

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

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

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

THANK YOU FOR LISTENING !!!