SunTec VAT

Complying with Value Added Tax (VAT) in the GCC with SunTec VAT Solution.

What is VAT and What Does it Entail for Banks and Financial Institutions?

VAT (Value-Added Tax) is essentially a consumption tax levied at every stage of the supply chain (added on the value of goods and services) – from raw materials to the end product. It serves as a source of revenue for governments. 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.

Understanding the Complexity of Deploying a VAT Solution

A VAT compliance solution comes with its own complexity. Designing and maintaining a future-proof VAT compliance system and its impact on the entire process cannot be underemphasized. There is an added pressure to comply with constantly changing regulations. Failure to comply would lead to severe penalties and reputational risk for banks. It is, therefore, imperative to efficiently integrate the VAT solution into the bank’s existing processes and technology to ensure VAT compliance.

SunTec's GCC VAT Compliance Solution to Aid Banks

SunTec GCC VAT Solution is deployed on its flagship platform SunTec 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 a smooth journey towards GCC VAT compliance for banks. SunTec GCC VAT Solution a market leader in indirect taxation, is primed to ensure greater efficiency and transparency in tax compliance.