Khawarizmi Training Solutions Basic Mechanics and Accounting for VAT Khawarizmi Training Solutions
Price: USD 327
USD 436
Instructor led live virtual classroom online. Classes may be individual or in group.
  • Duration / Course length: 18 Hours
  • Timings: Enquire

    Course details

    Course Description:

    It is projected that on the 1st of January, 2018 a common Value Added Taxes (VAT) framework will be implemented across the GCC states. This course will allow you to provide the necessary direction to your accounting, finance, IT, business development and other concerned departments for the successful implementation of the VAT. We will help you recognize the terms, principles and basic mechanics of the VAT as they will be adopted and implemented in the GCC. In addition, this course gets you prepared by upgrading the skills of your accounting staff to fully understand and properly account for the VAT. From invoicing to recording entries and preparing VAT return forms, this course provides an overview of the accounting treatment of the VAT according to the various types of goods and services.

    Course Methodology:

    The course uses a mix of interactive techniques, such as brief presentations by the consultant, application of theories and group exercises to exchange experience and apply knowledge acquired throughout the course.

    Course Objectives:

    Participants will be provided with:

    • List major terms of VAT such as a taxable person, input VAT, output VAT, exempt supplies and much more

    • Recognize the effect of VAT adoption on their company's financial statements

    • Explain how to account for VAT on purchase and sales of goods or services whether the entity is registered in VAT or not

    • Use the company's trial balance to fill up a VAT return

    • Formulate a preliminary assessment of impact of VAT adoption on operations and accounts

    • Assess impact of VAT on selected industries

    Main Topics to Be Covered:

    Module 1: Introduction and basic mechanics of VAT

    Basic mechanics of VAT

    • Definition of VAT 
    • How VAT works: input and output VAT calculations 

    Persons and entities subject to VAT

    Different types of supply

    • Taxable supplies within the scope of VAT: goods and services 
    • Exempt supplies outside the scope of VAT 
    • Zero-rated supplies 
    • Deemed supplies 

    Place of supply: local versus export

    VAT on sales charged on delivery, invoice or payment date

    When to record and recover VAT on goods and services received

    • Local delivery 
    • Imported goods and services 

    Taxable amount: which amount is subject to VAT

    • Discounts and free goods treatment 

    The party liable to pay VAT

    Module 2: Accounting for VAT

    Issuing the VAT invoice

    What does a VAT invoice look like

    Contents of an invoice

    • Difference between cash business and sales on account 

    VAT records and documentation to be maintained

    Accounting entries for VAT

    • Local purchases of goods and services 
    • Imported goods and services 
    • VAT on expenses 
    • Self-supply of goods and services 

    VAT on sales

    • Discounts provided to customers 

    Interest on late customers' payments

    VAT entries for bad debts write-offs

    VAT entries for down-payments

    Treatment of damaged goods

    VAT on leases taken: operating and finance leases

    Purchases and sales of fixed asset

    Entities providing non-vatable activities

    Trial balance accounts needed to complete a VAT return

    Expected format of a VAT return

    Module 3: Issues to be considered and addressed by industry



    Meetings, incentives, conferences and events

    Financial services and insurance

    Real estate and construction


    Oil and gas

    Updated on 16 March, 2021

    About Khawarizmi Training Solutions

    Established in 1985, the Continuing Education Center (CEC) at Al Khawarizmi International College (KIC), now known as Khawarizmi Training Solutions (KTS) is a leading provider of training and professional development programs for individuals and corporate groups in the U.A.E. Continuing Education Center (CEC) at KIC offers a wide range of courses in the fields of IT, Business, and English. It is licensed by the Abu Dhabi Centre for Technical and Vocational Education and Training (ACTVET). Through challenging training courses, KTS Center contributes to the advancement and transformation of the UAE into a more skilled, diverse, and knowledge-based community.  In turn, this raises the standards and the quality of life of our students and improves our community.  Both individuals and industry professionals benefit from the high standards and good reputation of the KTS.

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