Accounting for VAT. With the expected introduction of a Value Added Tax (VAT) in the GCC countries, companies have to be prepared by upgrading the skills of their accounting staff to fully understand and properly account for the VAT. From invoicing to recording entries and preparing VAT return forms, this course provides an overview of the accounting treatment of the VAT according to the various type of goods and services.
Additionally, we compiled from multiple sources the possible VAT treatments, challenges faced and questions to ask by industry, in order to help businesses in the GCC understand the likely impact from adopting VAT on their operations and financial accounts.
In order to implement VAT across an organization, it is essential that the finance team understands the principle rules of Accounting for VAT.
In this course, delegates will learn about the documentation required for both outputs (sales) and inputs (purchases and expenses)of the business, as well as procedures and controls that may be implemented to ensure the accuracy of the VAT accounts and records.
This course will allow you to provide the necessary direction to your accounting, finance, IT, business development and other concerned departments for the successful implementation of the VAT. We will help you recognize the terms, principles and basic mechanics of the VAT as they will be adopted and implemented in the GCC. In addition, this course gets you prepared by upgrading the skills of your accounting staff to fully understand and properly account for the VAT. From invoicing to recording entries and preparing VAT return forms, this course provides an overview of the accounting treatment of the VAT according to the various types of goods and services.
You might be interested in another Finance and Accounting courses as a next step.
YOU WILL LEARN HOW TO
The course uses a mix of interactive techniques, such as brief presentations by the consultant, application of theories and group exercises to exchange experience and apply knowledge acquired throughout the course.
By the end of the course, participants will be able to:
-Explain how to account for VAT on purchase and sales of goods or services whether the entity is registered in VAT or not
-Use the company’s trial balance to fill up a VAT return
-Formulate a preliminary assessment of impact of VAT adoption on operations and accounts
IMPORTANT COURSE INFORMATION
Participants who fully attend this course and complete the test on the last day will receive a Strategic Axis Professional Certificate (SAPC). SAPC certificates are regionally recognized and can be quite valuable when applying for more senior roles within the organization or outside.
COURSE OUTLINE
Issuing the VAT invoice
What does a VAT invoice look like?
Contents of an invoice
Difference between cash business and sales on account
VAT records and documentation to be maintained
Accounting entries for VAT
Local purchases of goods and services
Imported goods and services
VAT on expenses
Self-supply of products and services
VAT on sales
Discounts provided to customers
Issuing the VAT invoice
What does a VAT invoice look like?
Contents of an invoice
Difference between cash business and sales on account
VAT records and documentation to be maintained
Accounting entries for VAT
Local purchases of goods and services
Imported goods and services
VAT on expenses
Self-supply of products and services
VAT on sales
Discounts provided to customers
Module 2: VAT Entries Procedures
Returned Goods
Exchanged goods
Interest on late customers’ payments
VAT entries for bad debts write-offs
VAT entries for down-payments
Treatment of damaged goods
Sale on consignment: therapy for consignee and consignor
VAT on leases: operating and finance contracts
Purchases and sales of fixed asset
Entities providing non-vatable activities
Trial balance accounts needed to complete a VAT return
Expected format of a VAT return
