VAT

VAT Consultancy

From 1991, Value Added Tax (VAT) has come into effect in Egypt and was known as sales taxes. As a business, if you haven't planned yet for VAT, it is imperative that you should plan for the impact of VAT over your business right now. Whether your business operates in Egypt or outeside it , VAT is bound to impact your company inevitably. Are you searching for the right VAT Consultants that help you in achieving VAT compliance? AEH has been offering VAT consultancy services in Egypt, across diverse sectors for more than 20 years. Using the wide range network that AEH has with other accounting firms across Egypt, AEH has been able to meet already taxed businesses as well as newly taxed ones' demands, in order to address the challenges that these businesses face in getting themselves ready for VAT. At AEH, we can help you plan for your VAT research and get ready for VAT compliance in Egypt

Our special VAT consulting services in Egypt involves:

Providing an understanding of the Tax Laws and Executive Regulations to our client companies
Understanding your business model and evaluation of VAT impact on your business
Providing inputs for using VAT compliant software for your company Exclusive VAT bookkeeping assistance
Providing training to your staff on VAT Support for VAT registration for your business as individuals or as companies.
Helping you to prepare and execute all VAT related communication to your trade partners.
Providing strategic inputs for conducting your business in the post-VAT age, addressing aspects like pricing, working capital, marketing & communication etc.
Our VAT consultancy team will guide your financial team and update them with up-to-date progress concerning VAT. Additionally, our VAT consultants will assist your team in developing your internal VAT operations, involving financial management and bookkeeping operations, in tune with the VAT system requirements.
AEH’s VAT consultancy assists you to obtain substantial knowledge in VAT and our consultants assure that your business process is totally prepared and skilled for the transition. Over and above the scope of services mentioned above, our VAT consultancy reports would include the following.
Analysis of the influence of VAT on costing, profitability and working capital. This evaluation provides an improved high level understanding to the management regarding the overall VAT impact on the business.
Our VAT Implementation programs are backed up by training programs which are performed in different modes such as personalized individual training or department level training on client requirements
We also provide a general VAT sensitization training to key employees across various departments of the company that are impacted by VAT. This would involve engagement of other functions such as Sales, Marketing, Sales Coordination, Administration etc. and at times the senior management of the company as well.
At the end of our consultancy, we provide you with a VAT Impact Study report comprising Key Recommendations, Transaction Analysis as well as other aspects that will enable you to implement VAT successfully.

Vat Implementation Services:

We assist the clients efficiently to manage their VAT transactions to comply with VAT laws.
On Time, precise & cost-effective support / VAT advisory services by our VAT Experts for all inquiries and issues that may face your business ongoing operations and transactions.
AEH provides qualified Chartered Accountants with exceptional experience in diverse industries, in which they were required during their journey of working under the name of AEH to work on the accounting and bookkeeping of several industries from A to Z before they go for Audit, in order to be completely aware of each industry's nature of transactions and accounting, and thus our team's experience doesn’t end by the audit borders, while exceeds to reach and interfere in the accounting of several fields of businesses and industries.
VAT Implementation is undoubtedly a vital participate in the economic sector of Egypt, which have a huge impact on the purchasing power and overall cost of living. VAT is one of the most common types of consumption tax that has been implemented in more than 150 countries across the globe.
Businesses will have to carefully document their income, costs and VAT charges associated with it. Configuration of the IT system as per the VAT regulations needs to be completed by the entity for smooth handling of tax booking, invoice generation, return filing etc.
VAT implementing plans and approach comprises:

Evaluating and mapping the business transaction: Business transactions need to be accurately assessed for a hassle-free implementation.
Identifying implications based on the current business model: To build the most suitable VAT implementation plan for your business, an important step is to recognize the implications based on the present model.
VAT readiness assessment: Companies will have to assess the VAT readiness of their technology platforms and tools, whether they are capable enough of the VAT implementation intake or not.
Issuing a VAT blueprint: Designing a blueprint outlining the implementation of VAT on your business model, considering it is going to definitely affect your trade in various ways.
Configuration of the IT systems, process and people: The IT systems should be configured according to the VAT regulations, along with providing guidance to core VAT team members in the client organization about the implementation of VAT in Egypt, business type and compliance challenges with VAT.
Identifying resource requirement for VAT which will enable the entity newly registered in VAT a smooth migration to regime.

VAT Return Filing, Compliance, Accounting & Transaction advising

Our TAX Advisory Services is designed to supply all your business demands to cater you our best guidance and help as long as your business is operating.
AEH provides qualified Chartered Accountants with exceptional experience in diverse industries, in which they were required during their journey of working under the name of AEH to work on the accounting and bookkeeping of several industries from A to Z before they go for Audit, in order to be completely aware of each industry's nature of transactions and accounting, and thus our team's experience doesn’t end by the audit borders, while exceeds to reach and interfere in the accounting of several fields of businesses and industries.
VAT is a charge imposed on certain provisions of goods and services. VAT is calculated and charged on the value of services or goods that has been supplied under each sales or purchase transaction.
VAT is not a cost to the business, as long as simple things are done timely and accurately.
VAT is a form of indirect taxes, in which the Government is necessitating you to be an agent to collect and remit taxes to it. The VAT value collected on sales is your payable to the government and the VAT value that you paid on account of purchase is receivable from Government, Hence, the difference shall be your payable to or receivable from the Government.
Accordingly, Companies must maintain a separate record of the VAT they charge and the VAT they pay on their purchases.
In addition to these companies are required to maintain number of records and information as required by the ETA;this will enable them to file the VAT return timely and accurately. Further, this will ensure that sufficient documents and records are meeting a VAT inspection's demands performed by the ETA,in which a VAT inspection process seeks for proper records to identify the below, which will be as a result required to file in returns:

Your Total Sales identifying:
1. Local sales
2. Export sales
3. Exempted sales
Your Total inputs value identifying:
1. Local purchases
2. Import purchases
3. Local machines equipment's
4. Import machines equipment's

The VAT you are payable /refundable for the government VAT Accounting Procedures.
As VAT is a tax transaction that influences numerous processes within your business, if the information isn't provided accurately you might be subjected to fines and penalties.
At AEH, VAT Consultants have substantial experience in undertaking VAT accounting procedure reviews to ensure that companies meet their VAT compliance needs as outlined in the law. Similarly, other VAT legislation and accounting standards which must also be met. In AEH we guarantee you the following:
On Time, precise & cost-effective support / VAT advisory services by our VAT Experts for all inquiries and issues that may face your business ongoing operations and transactions.
Formulating , solutions and preparing for recommendations to be suggested on our clients when they demand for in any situation.
Advisory Service on call along the day and for the whole week.
VAT Advisory service with personal visit to the client office.
Handling industry specific issues with precise guidance to comply with the Egyptian VAT law
Our industry website offers you the exclusive range of services that we can provide your company with, related to VAT accounting and tax compliances. Our accurate review of VAT accounting – measures & delivers Value Addition by finding efficient method to control the VAT functions within your business where ever possible. We also ensure that the processes and controls meet VAT inspection processes and other applicable requirements. We are here to support you with all your VAT accounting needs.
We also offer accounting services alongside VAT consultancy Egypt. We partner with you to complete your company’s bookkeeping process and VAT requirements. Additionally, we advise you about valuation, business planning and analysis of any possible non-compliances. Apart from our certified accountants, we have the skills, knowledge experience and personality to handle all your accounting and VAT requirements. Being your trusted VAT planner and financial consultant, we are ready to confront any financial challenges that you may experience. We adapt our services to the precise needs of companies, to support you

VAT Audit Services

VAT Audit involves an external audit on the entity’s overall VAT readiness and compliance procedures and identifying any major deficiencies in the VAT environment, including transaction checking. With the help of auditing, one can cross-check whether VAT has been properly accounted for in the business transactions, and can also ensure if the information reported in VAT returns is accurate.
VAT Audit Services make it easier to identify the purchase and sales flow, as to whether it is correctly entered in the financial records of the company. VAT Audit will result in a thorough and critical evaluation of the VAT transaction by the entity and a report will be issued based on the agreed-upon procedures as per the Egyptian Law's standards.
VAT Audit will be conducted in line with the guidance note issued by the Egyptian Tax Authority on the document maintenance, tax collection, payment, input tax claim etc. Chances of double accounting and double payment of supplier invoices can be identified with the help of auditing.

VAT Training by AEH

AEH provides onsite and offsite VAT training, to the staff involved in accounting, financials, and tax, which helps the firms to handle their accounting without much issue. We have a team of professionally trained experts who can assist you incorporate this novel implementation into your business and make you familiar with VAT laws and processes. We work with clients to simplify their VAT implementation processes and help them operate in the new environment.
AEH offers different models of VAT Training

Onsite training at clients’ premise
Training at AEH training room
Quick training sessions and Q & A sessions
On call support services

AEH helps you in:

Achieving tax compliance
Carrying out legal activities
Managing records
Preparing and Filing VAT return
Dealing with ETA post Penalization
VAT return Filing

FAQs

What is the deadline for VAT Return filing and payment?And what penalties a business may face if it wasn’t committed to this deadline?
Do we need to keep mandatory books of accounts for VAT?
What are the consequences for non-registration for VAT or delayed registration?
What are the services and products that are exempted from VAT?
When can we claim input for this (assuming monthly returns)

Invoice received in Feb but not accounted due to approval till June. Does it have to be claimed in June when its accounted or in Feb when we received the invoice?
Supplier delivered the Goods in January, but invoice was received only in June by the customer, in which tax return the input can be claimed.

For 1. above: invoice was received by the customer in Feb hence the input can be claimed in the tax return of Feb. the reason being the invoice is received and due to internal issues the claim was made. In case of such omission the taxable person should claim maximum by March return else the input gets time barred.
B) For 2. above:As per the used guide issued by ETA. If the taxable person has not received the tax invoice or other acceptable documentation in the tax period when the supply was made, they may deduct the input tax in the tax period in which the tax invoice or the alternative documents are received. Hence in this case the taxable person can claim the input in the tax return for June.

VAT