UAE is all set to implement VAT from the 1st of January 2018, adding on to the unified VAT agreement for the Cooperation Council for the Arab States of the Gulf. Set at 5% for a wide range of goods and services, this could pose as a grave challenge for organizations who have little to no experience in managing any form of Taxation in an ERP environment; especially if you run SAP.
Organizations running ERP systems, like SAP must prepare well in advance and scope out every implication that a changing financial infrastructure will have on current business operations. Essentially every transaction in your business will have a VAT component. Therefore, it’s not easy to set up your SAP environment for VAT. All the transaction data required for your VAT calculations are available in your SAP ecosystem, however, this is not readily accessible without required configuration.