We had a fantastic response to our first GCC VAT webinar where we had many questions asked of us. Below are all the official questions that came through with our answers for you. Question: I think only two new GL required for VAT in ERP? Answer: Traditionally, tax has been reported form your GL and some solutions will still do this and when reporting from your GL, you will need more than one GL code for VAT. However, the correct way is that you should be able to reconcile your VAT back to the GL accounts but other than that, all VAT reporting should be done from your transactional data. This means 2 GL codes, one for AP and one for AR is perfectly sufficient. Question: Is VAT applicable for Intercompany transactions? Answer: Whilst the tax may be out of scope of VAT for certain transactions, any invoice sent between two legal entities is considered a legal transaction so an invoice is needed and tax is needed on that invoice even if the tax is 0%. So whilst the tax may be
Source: How will VAT in the GCC affect your ERP solution – Questions and Answers from presentation
