bahrain vat in oracle - innovatetax.com · – an oracle ebtax api. we are the global experts in...

Bahrain VAT in OracleDelivering full automation and total compliance

Foreword

Innovate Tax are engaging with businesses across the GCC region and working with a number of partners, implementing VAT and preparing clients for the huge shift in business process in advance of the deadlines.

Innovate Tax have implemented indirect tax in Oracle around the globe but going from No Tax to Value Added Tax has led us to adapt our approach to the GCC region. We are experiencing a need for a more educational and consultative approach as businesses learn about the impact VAT will have on their ERPs.

The complexities of VAT cannot be underestimated and businesses that haven’t begun engaging with the right partners are running out of time. We are forecasting a bottle neck towards the end of 2018 as businesses rush to implement VAT before the legislation comes into place. Due to the lack of resources and VAT specific knowledge in the region, we foresee businesses risking poor implementations.

As various tax authorities finalise legislation, we expect to see more urgency in the region however we recommend that the

time to engage with the right partners is now.

Andrew Bohnet Managing Director, Innovate Tax

Foreword

Lessons learned in the GCC

Our GCC Clients

Introduction to Innovate Tax and VAT in the GCC

Why automate the VAT calculation process?

eBTax Rapid Install™

Our Approach

Manual vs Automated Oracle ERP Solutions

Delivering Full Automation and Total Compliance

Reports and Analytics

Training and Testing

Support and Maintenance

What you can do NOW!

Why choose Innovate Tax?

Tax Authorities will DELAY the release of some information.

KSA & UAE Tax Authorities introduced and amended tax

rules right up to and after go-live but this didn’t stop

implementation progress.

Our draft KSA VAT logic was almost 99% accurate to the

legislation that was finally published.

Our KSA clients were able to undertake a soft go-live as

early as December 1st (30 days early!).

Calculating tax in THIRD PARTY SYSTEMS is often a requirement.

Many firms in the GCC require their third party systems

to calculate tax – but they do not have the functionality.

We have built a product to solve this problem

– an Oracle eBTax API.

We are the global experts in providing indirect solutions in Oracle, and we look forward to taking what we have learnt to businesses in Bahrain.

Lessons learned in the GCC

www.innovatetax.com | #WeDoTax

As a global indirect tax automation specialist, we are no stranger to adapting our approach to suit each and every market place, with the GCC being no exception. We feel it is important to continuously improve, and part of that is to share our experiences and lessons we have learnt along the way. What follows are some of the key themes we uncovered during our recent implementations in The Kingdom of Saudi Arabia and The United Arab Emirates:

Early engagement of advisory and implementation specialists is ESSENTIAL to success.

The best suppliers may not be available to those who delay engagement.

Adoption of VAT in the GCC is COMPLEX.

From impact assessment through to systems configuration, there are many factors to consider

and accommodate - and it takes time!

At the early stages clients do not always fully appreciate the impact of VAT on technology

within the business. However, our experiences

help us to navigate the complexities of trading within the GCC and ERP VAT processes.

Experience is everything.


Our GCC clients

Innovate Tax often engage with global businesses who need help to manage the complexities of multi regime, trans-continental trading within their ERP with automation.

The GCC lends itself well to our Rapid Install toolkit and consultancy experience, but we are passionate about educating our clients in finding the right solution – not just any. Automation where a new regime is introduced is absolutely key to aiding compliance and removing a heavy burden on the internal resources. Join us on this journey of the introduction of VAT.

Introduction to Innovate Tax and VAT in the GCC


European Tax Innovator of the Year 2016/17.

Innovate Tax have been delivering indirect tax automation in the Oracle ERP space for over 10 years – priding ourselves on delivering the right solutions to every market sector in which Oracle has been implemented, in over 120 countries.

Either as trouble shooters or solution architects, the Innovate Tax teams (both R12 and CLOUD) have been commissioned to advise and implement solutions for countries which have indirect tax regimes in place, the GCC is different…

The introduction of VAT in the GCC offers us a new and exciting challenge...

The move from No Tax to Value Added Tax is not something to be overlooked or underestimated, and is rarely a requirement in the contemporary global market, making this a great opportunity to start managing indirect tax in the right way.

From previously working

within in a large global VAT

and Compliance team, I can

confidently say that the Innovate

Tax solution and product suite

will help us remain compliant

– and reduce expected

headcount in the GCC.

Dumitru Serbu, MKM Holdings.


The introduction of VAT imposes new processes for the Finance Team. There are two rates (0% and 5%), but the complexity of calculating, reporting and managing these can often leave businesses overwhelmed if caught unprepared.

Where tax is defaulted at either supplier or purchase category level, this is classed as a manual solution. At an operational level, a manual solution requires VAT knowledge from users to choose the right code – opening up the process to potential user error, undermining commercial compliance. The requirement to train and educate AP and AR staff in the mechanics of VAT should not creep into the implementation of VAT in the GCC. If the business automates the determination of tax in Oracle, it removes this training requirement altogether.

An automated solution is based on rules – a complex country specific matrix of rules which allows the eBTax engine to determine the applicable rate per transaction. All based on information captured, rather than defaulting or allowing a user to choose a code. Our rules based logic makes the determination of tax, irrespective of native language, accurate.

Our Approach

Innovate Tax have a suite of proprietary tools which help us to install our country specific logic faster than any other solution provider or consultancy – all within your Oracle ERP and no need for further licenses. We load in the full country specific logic, and then tailor the configuration to accurately reflect our client’s requirements, futureproofing the solution. Our clients may move into new markets and industries, so we can simply go back in and switch on the applicable rules – rather than having to look to re-build the solution each time.

Our eBTax Rapid Install™ has enabled us to load in 37 countries, ready for testing for one of our Telco clients in just 3 days. Offering a huge time cost saving to the business, as well as the comfort of complete accuracy.

The autonomous process involves compliance accuracy, it saves time in the transactional process and allows the business to recover as much tax as possible.

Why automate the VAT calculation process?

www.innovatetax.com | #WeDoTax www.innovatetax.com | #WeDoTax

eBTax Rapid Install™

By using our award-winning eBTax deployment tool, we can save up to 98% on configuration time but this also sets the scene for the overall solution and providing the building blocks for all other areas of the tax automation process. 1. Your Business

2. Out of the Box

3. Education4. Feedback

5. The Solution

6. Copy 7. Replicate 8. Repeat

1. Your Business

While Innovate Tax already have a complete out of the

box Indirect Tax solution, we also need to make sure we understand all your existing

and future requirements such as your industry, the type of products you sell and the tax

registrations you have.

2. Out of the Box

Tax is Tax! It does not matter how your overall system

architecture has been designed, tax is not determined by your company but by the countries that collect the tax. As a result

we have developed a best practice approach for the

configuration of the Oracle eBTax module that provides an

80% fit right out of the box! This is achieved by running a series of scripts to load in the data –

with no code changes.

3. Education

Now we’ve installed our best practice Indirect Tax solution, we need to educate you on how it works! We design the

solution based on the reporting requirements. This means we

use predetermined rate names and tax logic that is likely to be different to your existing

solution. Education means your users see the benefits of the new system at the beginning

and adapt their processes and testing accordingly.

4. Feedback

After you understand how the new indirect tax solution

works, you’re in a much better position to tell us what you

need the system to do. We’ve already installed the 80%,

now work with us to get the remaining 20% that will meet

all your existing and future requirements. This part of the

process allows us to understand your business and capture

additional requirements specific to your industry or company.

Our Approach


5. The Solution

When we understand your needs we finish the setup by adding your company’s 20% to the existing 80% already

installed. This could be driving the tax from your own project event types or integrating with

a third party product. We test so that it seamlessly integrates with

the 80% pre-tested solution. We work with you to ensure

your Indirect Tax solution meets all existing and future needs

and more importantly that it is efficient and compliant.

6. Copy

Once you have your complete solution in place, or indeed at any point you want to move

new code, we can copy the tax by extracting the code.

7. Replicate

Now we can replicate this solution to your other instances! We can take a fully working tax solution in your DEV instance

and move it to your CRP, TEST, UAT and even to production all in a couple of hours with NO

user error! Compare this to 30 days of manual setup.

8. Repeat

New requirements appear late in the project but this is okay

because we can make and test the new requirements and, once accepted, we transfer them to all other instances. We repeat

this process as many times as you need. Not only does this save time but it ensures accuracy and completeness because you are copying a tested solution rather than

relying on manual data entry and the risk this brings.


Manual vs Automated Oracle ERP Solutions


The application of our fully automated indirect tax solution offers any business huge advantages over the lesser choice to simply setup the eBTax engine with the 0% & 5% rates (a Manual Solution) in the GCC.

The definition of tax automation within Oracle is to configure the eBTax engine with a complex set of business specific rules, backed up by country specific legislative parameters in order to determine the correct tax.

A solution design where tax is defaulted either at a supplier or purchasing category level is considered to be a manual solution. And here are some of the pitfalls awaiting business that look to this, rather than automation.

Manual Configuration Drawbacks:

Requires VAT knowledge from AP user to get the decision right.

Payables staff processing time goes up due to requirement of vat decisions, adjustments and holds.

Slows down the VAT reporting process to correct errors / enter adjustments.

Leads to compliance issues due to VAT errors that may not be spotted.

Tax authorities have started to ask for VAT determination logic when auditing companies.

Sales Invoices with incorrect VAT need to be re-billed (customer perception, cash flow).

Can lead to reliance on VAT team to assist AP User where they do not have knowledge.

In a Manual setup, there is no visibility of the regime from a single easy to locate place (without Oracle knowledge), making it very difficult for Finance/Tax personnel to manage and review the rates. Moreover, with regards to compliance, without having an analytical tool reviewing transactions, incorrect tax rate selection is often not noticed until the time of the actual tax return submission.

Our proven Automated solution is built on rules – it can identify and highlight users (in real-time via our award-winning Tax Compliance Manager tool) who are choosing something different to that which the Tax Engine has deemed applicable. At this point, anyone in the Tax/Finance team can drill down into the actual transaction and correct – educate – understand the choice made.

Automation & Scalability – our solution is scalable to over 120 countries, it’s fully supported, based on the same country specific legislation and can be utilised across all LE and OU’s. Don’t just plan for now – future-proof your solution to cope with the ever changing global business landscape.


Innovate Tax pride ourselves on offering fully automated indirect tax solutions within Oracle ERP, fully utilising the powerful eBTax engine. By leveraging our award-winning suite of products, we are able to get businesses to a testing phase within a matter of days, faster than any competitor. By bringing the tax logic with us, we can install the rules into Oracle within hours and tailor the solution specific to the client’s requirements. Every business is unique, but tax is tax.

The benefits of a fully automated, rules based solution are numerous. From removing the risk involved of the end user choosing the tax codes to saving time searching for the correct tax rate, often based on numerous combinations and variables.

Reports and Analytics

A fully automated solution allows the client to utilise real-time reporting and analytics. Innovate Tax’s Tax Compliance Manager tool (TCM) enables the user to trace transactions within seconds of an invoice being processed. Any transactions where the tax codes have been manually overridden can be found, checked and amended within seconds. Saving valuable time searching for discrepancies, allowing the tax team to be a pro-active, not re-active force within the business. With tax authorities around

the world moving towards electronic reporting and regular checks, there is no better tool on the market to remain complaint.

Training and Testing

Whilst automation removes the risk from the end user, Innovate Tax ensures that members of the tax team are fully trained and tested before the go-live date so when it comes to the first tax return they are prepared and fully understand the complexities of tax reporting. Additionally, Innovate Tax provide full user guides in English and Arabic along with instructional videos.

Support and Maintenance

On top of this, every implementation is fully supported and maintained by Innovate Tax. Any likely change in the VAT legislation or internal system upgrade is covered as part of the business contract at no extra cost, leaving the client with peace of mind that their solution will stand the test of time. We also offer extra support in the form of HyperCare. Remote expert care from go-live to the first tax return ensuring compliance. Innovate Tax’s approach is to build lasting business relationships with all their partners.

Delivering Full Automation and Total Compliance


For the most cost-effective and fastest to deploy GCC VAT solution contact us today. UK: +44 1243 860893 US: +1 408 6229623 [email protected] www.innovatetax.com

Andrew Bohnet - Managing [email protected]

Stephen James - Tax Technology [email protected]

Nathan Farmer - Global Sales [email protected]

What you can do NOW!

With the legislation for VAT in the GCC expected to come into effect in the new year, the deadline is fast approaching. If you haven’t already started the journey to implement VAT on your ERP system, time is running out but it’s not too late to consult the experts. Innovate Tax have years of experience implementing indirect tax around the globe and award-winning products that can get your business to a testing

phase quicker than anyone on the market. Speak to us today and begin the conversation. We will assess your IT landscape and recommend the best path forward for your business. Begin this journey with some of the most experienced Oracle tax specialists in the world and make sure your powerful Oracle ERP is fully utilised. VAT is new to the region but it’s not new to us.

Innovate Tax are the world’s leading experts on indirect tax automation within Oracle ERP. We are a highly experienced team of consultants, each with upto 20 years’ experience specialising within Oracle project delivery. Innovate Tax offer the best end-to-end solution for tax automation on the market and have been consecutively awarded Tax Innovator of the year in 2016 and 2017 for our unique suite of products. We have an impressive global client base that spans across every market sector that Oracle can be implemented.

For indirect tax automation in Oracle, there is no business more qualified.

Fixed price and fully automated

Fully supported and maintained

Award-winning global solution

Fast implementation

Leading Oracle Tax experts

Total Compliance

Why choose Innovate Tax?

Suite 101, Heath Place, Ash Grove, Bognor Regis, West Sussex, United Kingdom, PO22 9SL

UK. +44 1243 860893 US. +1 408 6229623 [email protected]

www.innovatetax.com

bahrain vat in oracle - innovatetax.com · – an oracle ebtax api. we are the global experts in...

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