What is VAT and What it Entails for Banks and Financial Institutions?
VAT is essentially a consumption tax levied at every stage of the supply chain (added on the value added to goods and services) – from raw materials to the end product. It importantly serves as a source of revenue for governments.
The six GCC countries signed the VAT Framework Agreement in 2016 as part of which the tax is applicable to all goods and services that are bought and sold for use or consumption in the GCC.
This makes it imperative for banks and financial institutions to have a comprehensive and scalable VAT solution to meet their specific needs. The VAT solution must not just comply with all indirect taxation requirements but also offer scalability to quickly adapt to the constantly evolving regulatory changes. Banks must ensure that all the aspects of Indirect Taxes such as Output Tax, Input Tax, and Regulatory Reporting are taken care of.
Learn more about our Enterprise Indirect Taxation Management product
Understanding the Complexity of Deploying a VAT Solution
SunTec's GCC VAT Solution to Aid Banks
SunTec GCC VAT Solution is deployed on its flagship platform Xelerate, which enables financial services organizations and banks to smoothly comply with VAT regulations. Pre-packaged with over 200 features, our out-of-the box VAT solution has been designed to react seamlessly to changes in VAT law, policies, and practices. Over 20 banks across the GCC have partnered with us to comply with VAT regulations.
Uniquely designed to be an over-the-top (OTT) solution over the bank’s core solution, our GCC VAT Solution can easily integrate with the bank’s existing technology landscape. It has been designed to de-clutter core engines, bring out the indirect taxation logic and ensure banks’ smooth journey towards GCC VAT compliance. The market leaders in indirect taxation, SunTec GCC VAT Solution is primed to ensure greater efficiency and transparency in tax compliance.
With SunTec’s GCC VAT Solution, benefit from:
A single source of truth for VAT compliance and audit
VAT Deployment 101 for GCC Banks and Financial Services Firms
Given the intricacies of deploying a VAT solution, here is a quick guide to help you decide whether to buy a VAT solution or build one from ground up. Understand the difference between a centralized and decentralized implementation approach and discover the key aspects when embarking on a VAT implementation project to make your VAT adoption a success.