VAT stands for Value Added Tax which is levied on consumption of goods and services. It is of two types; general and indirect. The general consumption tax is paid by the consumers and hence, it is not charged on businesses. Indirect tax is paid by the sellers to the VAT authorities as they are the taxable persons but ultimately, buyers pay this to the sellers inclusive of the selling price. Awareness campaigns about VAT are usually conducted for educating the stakeholders on how to collect VAT. VAT training is basically meant for various businesses, finance managers, entrepreneurs, CFOs, auditors, SMEs, CEOs and MNCs. These businesses include those that deal with importing, producing and selling of energy drinks, tobacco products and carbonated drinks. In this training, rules of VAT system and their applications are explained to the target audience. Companies that are not aware of VAT or lack preparedness about how to ensure transitioning into the tax environment can take part in the VAT awareness sessions. So, those who are not prepared in the core operations of VAT should make efforts in making themselves ready for implementing VAT.
On 1st Jan 2018, the VAT law is about to be implemented in the UAE. There are only a few companies in the GCC region that give primary importance to VAT preparation and training. Many of the companies are still in the need of being aware of the VAT rules and implementation. For this purpose, several VAT training organisations in the UAE offer specialised trainings to such companies so that they can prepare themselves beforehand. The structure of VAT training course consists of making the businesses understand the principles and issues related to VAT. The training sessions also introduce the concepts, mechanics and treatments related to the services offered in the UAE. Accountants, corporate companies, finance heads, small and medium enterprises, directors and any professionals dealing with finance or accounts can take advantage of this training that allows them to transform their businesses through implementation of VAT.
On receiving VAT training, company officials can gain the confidence of dealing with all kinds of VAT issues and implement the regulations as set by the UAE government. It is important for the UAE government to levy VAT tax on businesses as this would boost up government revenue and would further help to recover from the effects of loss in the oil revenue. Thus, it would have a good social and economic impact on the nation. According to the experts, it is likely that no VAT tax would be levied on education, local transportation, healthcare, residential real estate and other essential items. The companies providing VAT training can deliver the workshop or training sessions at the premises of the clients apart from conducting regular sessions in their own campus.
The outline of VAT training course may include topics such as basics of taxations, concepts of VAT, VAT history, VAT updates, VAT applicable rates, VAT registration, Output VAT, Input VAT, VAT administration, goods and services that are exempted from VAT, partial exemption rules, VAT commercial applications, VAT documentation, VAT calculations, VAT return submission, case studies and others. The companies in the GCC are required to upgrade the skills of their staff and provide them training on understanding and effectively accounting for VAT.In such a scenario, the training service providers are assisting the companies in training their staff from the expert and knowledgeable corporate trainers and making them ready to work in the taxation environment. According to the type of VAT, the training companies can assist the organizations in all the operations related to VAT such as preparing invoices, recording the entries and preparing the VAT return forms. Also, they have the requisite VAT training materials gathered from authentic sources that can help businesses face challenges in implementing VAT.
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