VAT in Middle East

On 1 January 2018, VAT will come on stream in the Middle East. There have been a lot of quastions asked about this and Dynamics GP readiness in the community forums lately.

The short answer is that Dynamics GP has everything you need to record and account for VAT for the Middle East already built in (and not just in the latest version). The core Dynamics GP tax engine suffices to set up and transact with VAT for the Middle East. The VAT Daybooks module extends this functionality to allow for additional reporting and most importantly auditing of your VAT returns.

You do need to complete some set up procedures (VAT Details and schedules, assigning to Customers, Vendors, Items, and configuring VAT Daybook reports to suit etc.) following an analysis of your requirements, but once completed, VAT recording and reporting should be seamless.

One issue is the out of the box VAT Return reports. There are examples pre-configured for European countries. These may or may not suit your local Middle East / UAE requirements, but they can be edited or you can utilise SSRS. However, most users don’t use these system generated returns, instead using the VAT Daybook reports or a smartlist as the basis of their paper based or online returns.