Archive for the ‘schools’ category

Endpoint security against cybercrime – 7 key questions

December 17th, 2020

7 Vital Questions to Ask

Endpoint security has never been more important, more complex—or more challenging— than it is today. Given the multitude of solutions and of vendors , it is very difficult to sort through all of the competing claims to find what’s truly effective.

1. Will this solution run on all the devices in my environment?
2. How long will deployment take?
3. What will the members of my team need to know or learn in order to work with this platform
4. What types of preventative controls are in place?
5.From where does the vendor get its threat intelligence?
6. How does this solution integrate with incident response workflows? 7 Is 24×7 professional support available from the vendor?
7. Can this solution be integrated with other security services, products, or platforms from the same vendor to reduce costs and complexity?

Why Comodo?- Zero Percent Infection and Breaches for Customers

Comodo offers the only cybersecurity that stops undetectable threats.
Cloud-native cybersecurity with auto-containment stops ro-day threats that AI, ML, & other technologies miss.


Historical s scores and statistics from millions of endpoints on thousands of different networks of enterprise customers. It shows zero percent infection and breaches.

With Comodo you can “Protect without Detection.” The cloud-native framework delivers you zero day protection against undetectable threats while defending your endpoints from known threat signatures. Automatic signature updates simplifies deployment across your entire environment to lower operational costs

Contact us about Advanced Endpoint Protection 0097143365589

OMAN VAT update November 2020 -ask Synergy Software Systems

November 27th, 2020

The International Monetary Fund, Oman’s economy is expected to shrink by 10 percent this year, the biggest contraction in the Gulf, and its fiscal deficit could widen to 18.3 percent of GDP from 7.1 percent last year.

Last year Oman enacted on June 15 an electronic system for registering excise taxpayers, setting the stage for residents to be taxed on products deemed harmful to public health and the environment after a 90-day grace period. The Omani “sin tax” involves a 100% levy on tobacco, pork, alcohol and energy drinks and a 50% tax on carbonated drinks. This year it increased the tax on alcohol to 100%

Oman announced that it expects to introduce an income tax on high earners in 2022, the finance ministry said in a 2020-2024 economic plan, new details of which were published late on Sunday, as the Gulf state seeks to restore finances battered by low oil prices.

The plan also aims to redirect state subsidies to those groups who need it, rather than subsidize all users. Electricity and water tariffs will be changed gradually in the coming years, the document said.

Meanwhile Oman Royal Decree No. 121/2020 was passed, and the VAT Law was published by the Official Gazette of Oman on 18 October 2020. The date of implementation is expected to be 16 April 2021 (i.e. 180 days from the date of publication of the VAT Law). The Executive Regulations will clarify certain aspects of the VAT Law and those are expected to be published soon by the Official Gazette.
In the next 4-5 months’ time, businesses in Oman should consider the implementation impacts on the entire business, operations, procurement, sales, administration, human resources, information technology, etc. We advise an internal steering committee with a representative from each function.

The VAT Law published is exhaustive with the benefit of the experience of other GCC VAT Laws.

Registration
Muscat has set a voluntary registration threshold of 19,250 Omani riyals and mandatory registration for businesses and individuals with turnover of at least 38,500 riyals.
Non-resident businesses that provide taxable supplies will be required to VAT register. Unlike resident businesses, there will be no minimum threshold that needs to be met before nonresident businesses must register for VAT with Omani authorities. A non-resident business will probably have an option to appoint an agent in Oman – that does not have to be jointly and severally liable, nor a fiscal representative of the principal. More detail is expected in the executive regulations.
Rules for digital service providers based outside of Oman are still in development. Digital service providers based outside of Oman, as well as e-commerce services, will need to pay careful attention to regulations over the coming months to ensure compliance.

VAT impact assessment,
Administration:

• VAT registration and gathering information from customers
• VAT recovery issues and VAT grouping
• VAT litigation avoidance strategies

The VAT fiscal impact,
• budgets, cash-flow, working capital, etc. Financial record keeping it is to be expected, that any company found to have kept inadequate records or issued incomplete invoices may be subject to potentially severe fines.
IT impact,
Ascertain the impact on the accounting system software and hardware such as gathering and loading data, developing statutory reports, amending other financial reports.
• The law sets out rules for proper record keeping and invoicing. All VAT-registered entities must keep specified records, including customs and invoicing documentation, and retain these records for at least 10 years. Archive storage space/cost and the impact of future planned system upgrades needs to be considered.
• The law specifies mandatory filing requirements, including documentation required when filing VAT returns. Now might be a good time to look at both document management systems and RPA e.g. for data entry validation, or VAT reconciliation or for data entry to government websites.

Process and documentation impact,
Redefine the processes under VAT – quotes, contracts and terms and conditions will need revision. Update your process documents for audit purposes.
VAT is a transaction-based tax, so the underlying legal documentation (ie, the contract or terms) detailing the supply of a good or service is the start of the review process. Review your contracts to determine the Omani VAT impact. Does the contract account for VAT (and/or other taxes)? When a contract is ‘silent on VAT’, this could well mean that the amounts specified therein are treated as inclusive of VAT. To avoid misunderstanding, such “silent” contracts should ideally be updated. Parties may need to (re)negotiate the considerations to account for non-recoverable VAT.
Businesses should also review the contracts to determine whether they reflect economic reality. Are the parties to the contracts the actual supplier and recipient of the service or goods? This is important in relation to the invoices issued by the supplier and, the right of the recipient to potentially recover VAT.
To apply the correct VAT treatment of the supply of a service or good, the supplier may need to obtain additional information from the recipient.
Contracts and/or terms and conditions may need to be revised in order to collect or store such information and to ascertain the correct Omani VAT treatment of the services or goods supplied.

Invoicing
Chapter 8 of the law outlines invoicing requirements. Any person making a taxable supply of goods or services will be required to issue a tax invoice, which may be in the form of an e-invoice rather than in paper format.
The details required to be disclosed on a tax invoice, the language in which invoices must be issued, rules for simplified tax invoices, and other similar requirements are expected to be set out in the executive regulations. Currently, it is expected that invoicing will be permitted in English and that use of Arabic will not be compulsory. The executive regulations are expected to specify when a business will be exempt from issuing tax invoices.
The requirement to issue tax invoices is also triggered in other circumstances, e.g., the receipt of advance payments that generate a requirement to account for VAT, or the making of deemed supplies.
For businesses issuing invoices in a foreign currency, the VAT amount must be stated in Omani Rials (OMR) and be converted using the average purchase and sale price of the relevant currency published by the Central Bank of Oman on the date on which the VAT is due. The tax authorities are expected to clarify whether any other conversion methods will be permitted.
This may affect your accounting system because you may sue different rates contractually or for corporate budgets or period end revaluation.
User training
e.g.
– how to add a customer TRN,
– how file a return,
– how to draft anew quote or contract.
– system changes

Transition management
Based on the VAT implementation in other GCC countries, there are challenges to be expected during the process. Complacency is a major risk, as is starting the implementation and transition activity late, and not allowing adequate time to test system and process changes.
Consider for example instances in which goods or services are paid for prior to the law coming into effect, but are only delivered once the law is in place?
The regulations indicate that VAT will have to be paid in such circumstances. However, further questions are raised in terms of invoicing and filing. More details are expected to be provided on precisely how compliance will function under these transitional circumstances
Appoint a proven implementation expert, to walk you through each type of business transaction and its treatment to avoid penal consequences.

Place of Supply
Understanding the concepts of “Supply”, “Place of Supply” and “Time of Supply” is critically important for effective implementation of Oman VAT. The place of supply shall be determined on the basis of the final consumption place of the supply, regardless of the product originating place,. When the supplies are consumed within Oman, they shall be levied to VAT. Services supplied outside of Oman to its residents will be treated as supplies in Oman. Some exemptions will apply to certain services provided to end-users outside of Oman.

For services, the place of supply depends on (i) the type of recipient (is the service business-to-business or business-to-consumer?) and (ii) the type of service. Special rules may apply to certain services such as real estate related services or electronically supplied services (or e-services). Real estate related services and e-services are always deemed to be supplied where the real estate is located respectively where the recipient is located. Particularly, overseas business-to-consumer suppliers of e-services should be aware that they will need to charge, collect and remit Omani VAT to the tax authorities.

Businesses in Oman which import services or goods may need to account for Omani VAT by means of a reverse charge mechanism. Such VAT would in principle be recoverable if and to the extent the business renders VAT taxable activities.
e-services are subject to VAT when the recipient of such services is located or residing in Oman. A reverse charge mechanism applies in case of business-to-business supplies of e-services, under which the burden of VAT is shifted from an overseas supplier to the Omani recipient. As of April 1, 2021, foreign and domestic e-service suppliers should obtain customer information (ie, verified VAT number) to determine their customers’ status (business or consumer).

Free zones
Businesses operating within free zones, special economic zones and duty free zones are likely to be subject to special VAT rules. Concessional VAT treatments are likely to be applicable for supplies within, to and from the customs duty suspension zones, free zones or special zones. Importers, who avail themselves of customs duty suspension benefits under the GCC Common Customs Law, would also likely be eligible for similar benefits under VAT. Dealing with this may require your accounting system to be able to handle a ‘reverse charge’ process.
Responsible person
All businesses will be required to have a responsible person who oversees VAT compliance. This person is liable to any penalties for failures to comply. This is similar to the UK’s Senior Accounting Officer concept, where a person can be fined up to £5,000 for not taking appropriate actions to stay compliant.
In Oman, the responsible person can personally be fined up to 10,000 OMR (nearly £20,000) with a prison sentence of up to one year. The fine can be doubled and the jail sentence doubled for repeat offenders. Any late submissions are subject to a 1% fine on the owed tax every month.
The severity of the punishments put the responsible person under considerable pressure to get things right. In a complex business, multiple users make VAT decisions, often with minimal VAT training and if you are relying on others to input data correctly then it’s imperative they do it correctly as the consequences of non-compliance are life changing.
If I were in this position, I would be doing everything in my power to achieve full compliance by using the best resources and tax technology available to me. I would also document all my recommendations.
The sensible way to mitigate the possibility of non-compliance is to minimise the risk of human error. For large businesses this means automating their VAT determination. Integrated finance/erp systems and RPA are two obvious solutions.
Most enterprise level businesses will be processing thousands of transactions a day, so human error will naturally occur when choosing tax codes, especially while VAT is a new concept in the country and wider region. Eventually staff become complacent or change jobs and new hires induction and training is less risky with automated systems.
Contact us for more information on systems we have already localised for VAT compliance, and how RPA automation can reduce cost and risk.

Exemptions:
Supply of foodstuffs, medicines and medical equipment is to be determined by the decision of the President, after coordination with the competent authorities. Some of the basic foodstuff will also be exempted from five per cent VAT. In addition to financial services, provisions of healthcare and education and their related goods and services, other exemptions are undeveloped lands (bare lands); resale of residential properties; local passenger transport; and renting real estate for residential purposes, Investment gold, silver and platinum, supplies of international goods and passenger transport and related services; supply of rescue aircrafts, boats and auxiliary ships; supply of crude oil and its oil derivatives and natural gas; import of maritime, air and land transport vehicles for transport of goods for commercial purposes as well as import of related services; and supplies for the disabled and charity organisation have been designated as zero rated.

Sector challenges

Retail sector: Certain food items may be zero-rated as per the VAT Law. The list of items which are zero-rated is not yet published. Businesses need to map the product with the list (consider the composition of the product, purpose, etc.). Incorrect classification could lead to a wrong zero-rating position.

Pharma sector: Medicines and medical equipment are zero-rated. However, the zero-rating is expected to apply in cases where the medicines are approved by / registered with the Competent authorities. The approval could be generic, or it may apply for certain period / certain class of medicines. For each sale / purchase there may need to be validation whether the medicine is approved to apply zero-rating.
Financial services: Banks and large financial institutions should classify their products into margin / fee-based income because margin is exempt from VAT and fee-based income is subject to VAT. Businesses must also consider the customer location because margins earned from a customer outside Oman will be zero-rated.
Certain charges which are penal may have a different VAT treatment. In the majority of the transactions, Islamic finance products will follow the treatment of non-Islamic finance products; however, there are some exceptions. The financial services sector may have a substantial portion of income which could be exempt, input tax apportionment.
Logistics sector: International transportation, i.e. movement from Oman to outside Oman and vice-versa is zero-rated whereas local passenger transport is exempt and local transport of goods is subject to VAT at 5%.
However the entire transportation journey involves freight forwarder, agent, shipping line, feeder operator, etc,. so ascertain the VAT impact on different charges for providing services. More clarity is expected from the Executive Regulations.
Export of services: Providing services to a customer based outside Oman is zero-rated subject to certain conditions. One important condition is that the benefit of services should accrue to the customer outside Oman. In other words, benefit should not be received by any other person in Oman. This may be subjective and depend on the arrangement with the customer and the nature of charge / services. It is advisable to identify such arrangements and to evaluate the VAT treatment. Other GCC countries are divided in terms of VAT treatment on such transactions.
It is likely that sector-specific guidance will be issued by the Oman Tax Authority to clarify the VAT treatment for different industry verticals.

Exempted Supplies from VAT
Some supplies based on transactions and others on nature will be exempted from VAT.
Supplies exempted based on transaction include:
• Any supplies transacted between the same group of the VAT group (e.g. a parent company and subsidiary or branches)
• Any supplies transacted between the same group of the VAT group (e.g. a parent company and subsidiary or branches)
• Business ownership transferred by one taxable person to another
• Any insurance claims made within the Sultanate of Oman
• All imports made by Armed forces, Army, and Air force in Oman
• All imports made by diplomats, embassies, consular bodies, international organizations. (subject to conditions)
• Supplies imported for charities and not-for-profit organizations
• Supplies brought to Oman by travellers and passengers as gifts or personal use only
• All supplies imported for people with special needs including medical aid equipmentIn addition to receivers’ or person utilizing the supplies, some supplies will be exempted from VAT by nature of product/service:
• Financial Services
• All Health Care services including the imports of medical supplies and equipment
• All educational services including the import of supplies for educational purpose
• Resale of the Real-estate and leasing of real estate properties for residential purposes only
• Non-developed land i.e. empty or barren land
• All local means of transportation for passengers

Registration process

The registration process is likely to start in January 2021 according to the Tax Authority in Oman. All registration process will be through its online e-services portal. The Applicant will have to provide the company ownership and business-related information. The necessary information required to register with the portal may include:
• Copy of trade license
• ID card and Passport copies of business owner and partners
• Company’s Memorandum of Association
• Contact details, E-mail for registration and other contact details
• Bank account details
• The income statement for the last 12 months
• Nature of business and activities performed
Each registering entity will be allotted a VAT registration identification number other than their currently held tax number.

Filing returns
Article 72 of the law prescribes the following minimum information to be provided in the periodical return:
• Value of taxable and exempt supplies;
• Total value of imported goods;
• Amount of output VAT on revenue transactions;
• Amount of recoverable input VAT on costs; and
• Net VAT due for the period.
Article 73 provides an option to amend tax returns within a period of 30 days from the date of discovery of any error or omission.

VAT payment
VAT will be payable to the tax authorities within 30 days from the end of the VAT period, together with the filing of the return. Unpaid VAT will be subject to a penalty of 1% of the tax due per month or part month, unless waived by the tax authorities in accordance with article 82 of the law

Mode of Payment
All entities entitled against the VAT requirements will have to deposit the VAT returns electronically through the E-Services portal.

VAT recovery
VAT recovery will normally only be possible in the case when the recipient has received a tax invoice which adheres to the Omani VAT invoice requirements. These requirements include details on the supplier and recipient. Any incurred VAT on incorrectly issued invoices (e.g, wrong issuing party, wrong VAT rate and/or other missing requirements) may not be recoverable. Businesses operating in Oman should define policies to ensure a proper VAT administration and invoicing.

A VAT group is a facility that allows two or more taxpayers to be registered for VAT purposes as a single taxpayer. The VAT group scheme is of interest to taxpayers with a restricted VAT recovery rate which is part of a group with non-restricted businesses. Inclusion of such payers in the VAT group may provide for (additional) VAT recovery.
Although VAT may be recoverable, the recovery itself generally takes a certain period of time. This cash flow aspect should be one of the considerations during the (re)negotiation process, particularly with large supply contracts spanning several years.

If you need advice on preparing for VAT and updating and automating your financial or erp systems then we have implemented VAT for more than a hundred companies in UAE, KSA and Bahrain. we are gold Partners for Microsoft Dynamics 365 Fiinance, Infor Sunsystems and UiPAth RPA.

Call u son 0097143365589

Microsoft Power BI new license option – called Premium Per User, or Premium Gen2. Ask Synergy Software Systems

September 25th, 2020

A recent, Microsoft Ignite 2020 announcement of a new licensing plan for Microsoft Power BI, called Premium Per User, or Premium Gen2.

We already have license options for:
Per user Pro
One of the most common licensing options is the Power BI pro account, that gives the user enough access to do *almost* anything they want in the world of Power BI development, building solutions, creating workspaces in the service, sharing the content to the users, etc. This licensing is priced $9.99 USD per user per month.

Good enough to cover the analytics needs of a small to medium scale business with usual analytics requirement. Requirements such as getting data from multiple sources, combining it, building superb visualizations and sharing among a reasonable number of end-users.

Premium: capacity-based
Another popular option is to purchase a dedicated capacity (a dedicated node of certain amount of CPU cores and RAM power) to host the Power BI content on it. The dedicated capacity comes not only with a better performance, but also, with extra features. Such as using AI abilities, some extra features in the dataflow development, geo replicas for the data model, paginated reports and many other features. Dedicated capacity comes in two modes; embedded, and Premium. and the minimum entry for Premium is $4,995 USD per node.

Good for enterprise scale businesses with advanced analytics requirement, such as working with big data, building computed entities in the dataflow, leveraging AI functionalities, and requiring high performance for their big data analytics.

Pro is cheap enough to get every business started with analytics, and Premium is powerful enough to cover sophisticated analytics requirements. However, there is a large group of small to medium scale business which have advanced analytics needs. Premium capacity-based licensing for this group is too expensive. For a company with l only 10 to 20 users, there may not be an ROI to pay $4,995 per month for analytics. On the other hand, Pro is too limited. They need some features that are not available in this licensing.

The details of how much the licensing would cost are still to be determined, as the licensing for Premium Per User, or Premium Gen2 will come later this year (2020). It means that a small scale business can pay for the analytics requirement with a per-user licensing , which may be a worthwhile option. That means business can scale with advanced analytics features like an enterprise customer.

Field Service Management – Microsoft a Leader in Gartner’s 2020 Magic Quadrant.

August 24th, 2020

Gartner has positioned Microsoft as a Leader in its 2020 Magic Quadrant for Field Service Management. Positioned as a Visionary in 2019, this new, improved position as a Field Service Leader reflects our ability to execute and completeness of vision. Products evaluated include: Microsoft Azure IoT (Hub and Central), Microsoft Power Platform (Power BI, Power Apps, Power Automate, and Common Data Service), and mixed-reality (Microsoft Dynamics 365 Remote Assist).

Field service technology is evolving at an accelerated pace, that is significantly impacting how we work, what we work on, and how we best serve our customers. As technology speeds forward creating greater efficiencies, it promotes cutting edge technologies into the mainstream. These technologies not only streamline processes and reduce costs, they also differentiate a service organization from the pack. It is these differentiators that have elevated Microsoft Dynamics 365 Field Service as a driving force within the field service community.

Dynamics 365 Field Service capabilities
Many of the field service capabilities Gartner highlighted are pivotal in providing world-class customer care. Microsoft pioneered cutting edge technologies that have led to the development of rich features that empower technicians and increase productivity, optimize resources, and enhance customer satisfaction—together helping FSOs to quickly realign operations to strengthen business continuity while building resiliency within a changing economic landscape.

Azure IoT Hub and Azure IoT Central.
With the addition of Azure IoT Hub or Azure IoT Central, field service is transforming the costly traditional break-fix model to a proactive and predictive service model. By combining IoT diagnostics, scheduling, asset maintenance, and inventory all on the same platform, field service organizations (FSOs) can reduce downtime by diagnosing problems before customers are even aware there is an issue. Connected Field Service lets you address issues faster by remotely monitoring devices, and the service data can help in making better decisions around dispatching technicians with the right experience, availability, and location to the customer.
Power Platform including Microsoft Power BI, Microsoft Power Apps, Microsoft Power Automate, and Common Data Service.

Use Power BI’s intuitive data visualizations, Excel integration, and customer data connectors with the next generation Field Service mobile app.
Empower technicians with an easy-to-use mobile experience to view: assigned jobs, and to record work performed with” photos and video captures, bar code scanning, and digital signatures.

They have information when visiting remote destinations without internet connectivity. Power Automate is easily integrated to create flows to improve process automation and the Common Data Service can securely store and manage data used by business applications. App makers can then use Power Apps to build rich applications using this data.

Mixed reality apps including Microsoft Dynamics 365 Remote Assist.
Mixed reality is a combination of augmented, virtual, and real world, where the user can interact with all views.

Mixed reality is creating a tsunami of change within the field service landscape since the advent of COVID-19. FSOs face unique challenges balancing the health and safety of technicians while maintaining business critical functions and continued support of customer needs. Dynamics 365 Remote Assist leverages mixed reality to access information and experts from anywhere, contact-free, by using Microsoft HoloLens and Android or iOS devices. Onsite workers can share real-time views of a repair, share knowledge and related documents, and perform inspections and audits to help accelerate the process.

Dynamics 365 Field Service capabilities are mapped to three distinct pillars: proactive service delivery, resource scheduling, and ensuring technician success.

In April, release wave 1 provided enhancements aligned to these pillars. New feature capabilities included a preview of AI-based suggestions for IoT alerts and incident types, and shared ongoing enhancements to resource scheduling and optimization capabilities.

What’s ahead for Field Service
Release wave 2 coming this October, will add more intelligence to Dynamics 365 Field Service iwith a new dashboard for monitoring key KPIs.

You will be able to automatically send customers work order satisfaction surveys using Microsoft Dynamics 365 Customer Voice.

FSOs will have the ability to quickly capture, and accurately calculate work order completion metrics—even metrics like a Broken Promise %. :

Proactive service delivery. Asset hierarchy and functional location, productivity enhancement for complex entities such as work order, and extended integration with Dynamics 365 Supply Chain Management.
Resource scheduling. Optimizer embedded in next-generation schedule board, predictive technician travel time based on traffic patterns, and enhancements for skills-based matching and travel outside working hours.
Technician success. A new mobile app based on Power Apps enhancements, a technician locator for end customers, and virtual onsite inspection capabilities.

Ahead of the curve
Most field service organizations typically consist of a “boots on the ground” labor force making service calls and often ordering cticila needed parts and rescheduling site visits to complete the repair.

FSOs are transforming and this business model is changing for the better. FSOs are evolving into profit centers by redefining their business model to a proactive service delivery, supported by leading edge solutions like Dynamics 365 Field Service, with rich features that optimize resources and empower technicians to succeed.

(Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.)

Contact Synergy Software Systems for more information and see this site for demo videos. https://dynamics.microsoft.com/en-us/field-service/demo/

KSA to add VAT on on-line purchases

June 29th, 2020

Saudi Arabia announced it will levy 15 percent value added tax (VAT) on items bought from online sellers and online stores based abroad. The Saudi customs authority said on Sunday (June 28) the new rule will be applicable to all products shipped to the kingdom on or after July 1. Saudi Arabia is tripling its VAT from 5 percent to 15 percent starting on July 1. It will also suspend the cost of living allowance to its citizens on July 1.

The online order placed before June 30, 2020 is delivered to the buyer after June 30, then 15 per cent VAT will apply on the selling transaction, whereas the seller should issue an additional tax invoice pertaining to the difference of the applicable tax due. E-commerce companies should ensure to collect additional 10 per cent from the buyer if the products will be delivered to the buyer on or after July 1, 2020 because they have to pay 15 per cent VAT at the time of custom clearance of the goods.

With the implementation of VAT on online selling, e-commerce companies are expected to collect additional fees from buyers if products are delivered to Saudi Arabia.

The kingdom will also suspend cost of living allowance from next month in order to shore up state finances, which have been battered by low oil prices and the coronavirus. The revised higher VAT rates will be applicable to all supplies of taxable goods and services in the country.

KSA VAT changes 1 July 2020

June 29th, 2020

The Government of the Kingdom of Saudi Arabia (KSA)announced that the Value Added Tax (VAT) rate will increase to 15% from the current 5%, effective 1 July 2020.The increase is one theof additional measures taken by the KSA government in response to the economic impact of the COVID-19 crisis, due to the decline in government revenue resulting from lower oil prices, reduced economic activity and increased healthcare expenditure.

How could this impact your business?
In addition to the increased VAT rate, businesses in KSA should expect an increased level of scrutiny from the General Authority of Zakat and Tax (GAZT), as VAT becomes a more important source of revenue.

Businesses whose sales are partially or fully VAT exempt, will experience an increase in costs as a direct effect of the rate increase. Nevertheless, the rate increase will impact all industry sectors in KSA and not primarily the Financial Services, Insurance and Real Estate sectors. All consumers will finally bear the brunt of the increases and it is not clear whether a lower rate of VAT, may still continue to apply to such items as food and utilities, to mitigate the impact.

We advise to review existing contracts that provide for continuous or periodic supplies of goods/services, and consider the required documentation changes that should be effected before 1 July 2020. Be clear on the correct rate of VAT to charge on contracts and supplies that span both June and July 2020. As o the 2018 introduction of VAT shows, transitional rules can be difficult to implement.

The rate increase will also impact cash-flow for businesses due to the timing difference between the payment and recovery of VAT, so cash flow planning will take on renewed significance.

Review the internal systems and processes to reflect the increased VAT rate. What systems and report need update and testing when.

We remind taxpayers that the window for voluntary disclosures without incurring penalties remains open only until tomorrow 30 June 2020, he rate increase heightens the importance for businesses to ensure they are fully compliant from a VAT perspective.

COVID-19 the fight back with RPA and UiPath. Ask Synergy Software Systems

April 17th, 2020

Windows Server 2008 and 2008 R2 support will end January 14, 2020- ask Synergy Software Systems about options.

November 16th, 2019

On January 14, 2020, support for Windows Server 2008 and 2008 R2 will end. Only 2 months away
That means the end of regular security updates.

Don’t let your infrastructure and applications go unprotected.

We’re here to help you migrate to current versions for greater security, performance and innovation.
009714 3365589

“Disbursements & Reimbursements’: U.A.E. – VAT clarification

July 31st, 2019

The Federal Tax Authority (‘FTA’) has released a Public Clarification on “Disbursements & Reimbursements” which addresses how to distinguish reimbursements and disbursements, and to clarify the applicable VAT treatment.

U.A.E. businesses incur expenses and subsequently recover such expenses from another party. The VAT treatment of the subsequent recovery of expenses depends on whether the recovery is a “disbursement” or a “reimbursement”.

The first step to determine whether a recovery is a disbursement or reimbursement is to establish whether you have acted as a principal or an agent in purchasing the goods or services

General principles to determine the VAT treatment of such recoveries:
Where a taxable person acts in the capacity of an agent, the recovery would generally amount to a disbursement.
A disbursement does not constitute a supply and is,therefore, not subject to VAT

Where a taxable person acts in the capacity of a principal, the recovery would generally amount to a reimbursement.
A reimbursement is part of consideration for the supply and follows the same VAT treatment as the main supply.

Principles

* The other party (from who you are recovering such expenses) should be the recipient of the goods or services;

* The other party should be responsible for making the payment to the supplier;

* The other party should have received an invoice or tax invoice in their own name from the supplier;

* The other party should have authorized you to make the payment on his behalf;

* The goods or services paid for should clearly be additional to the supplies you make to the other party;

* he payment should separately be shown on the invoice and you should recover the exact amount paid to the supplier, without a mark-up.

* You should have contracted for the supply of goods or services in your own name and capacity;

* You should have received the goods or services from the supplier;

* The supplier should have issued the invoice in your name;

* You have the legal obligation to make payment to the supplier;

* In case of goods, you should own the goods prior to making any onward supply.

Examples

Company A procured group medical insurance from a local insurance company and received an invoice directly from the insurance company.

* Company A requested Company B to make the payment on its behalf.

* The subsequent recovery of the amount by Company B from Company A will amount to a disbursement, and would not be subject to VAT.

* Company A should ensure that the Tax Invoice is addressed to it from the insurance company and should recover the input tax through its UAE VAT return, subject to the normal input tax recovery rules.

Company A entered into a contract with Company B to provide marketing services.

* The contract stipulated that Company A would be eligible to reimburse the expenses from Company B.

* Company A incurred the expenses in its own name and subsequently recovered the amounts from Company B as per the terms of the contract.

* The recovery of expenses from Company B would follow the same VAT treatment as that of the main supply.

We recommend;

* Identify the nature of your contract and agent/principal relationships (if any) based on the above principles;
* Ensure that all disbursements have proper authorizations (contracts); and
* Re-view all inter-company disbursements/ reimbursements (cross-charges).

Calorie counts on menus in Dubai deferred.

July 22nd, 2019

Khalid Mohammad Sherif Al Awadhi, CEO of the environment, health and safety control sector at Dubai Municipality recently said that displaying calories in menus will be optional for next two years and that the Municipality decided to postpone the implementation of the rule,, “to allow enough time for the industry to prepare itself.”The Food Safety Department will continue to encourage food establishments to declare calorie content.

(In May it was announced that restaurants, cafeterias and cafes with more than five branches were expected to mandatorily display the caloric value of each and every food item from November this year. All other restaurants, catering establishments and hotels were given the deadline of January 2020 to implement the rule).

A similar postponement happened in the USA ( part of the 2010 Affordable Care Act) due to industry lobbying. For example grocery store and convenience store industries argued that the rules didn’t take into consideration the vast differences between how the various types of affected establishments operate (think fast-food restaurants versus pizza delivery chains versus gas stations). They protested the legislation would place unfair burdens on businesses that sell food and drinks that aren’t displayed on a centralized menu board, such as gas stations that may have multiple drink stations where customers can get self-serve sodas, frozen drinks, or coffee.

A number of chains, including McDonald’s and Starbucks, had already put menu labeling into effect in recent years in anticipation of the new guidelines.

Arguably one reason a lot of restaurant food tastes so good is because it’s full of fat and salt — and no restaurant wants to broadcast to its diners that they’re serving 2,000 calorie salads or 1,200 calorie milkshakes. However, In light of the global epidemics of obesity and diabetes, some believe it’s simply irresponsible for restaurants to serve burgers with more calories than an average adult human needs in a day, or lattes that have more sugar than a chocolate bar.

Whether displaying nutritional information on menus actually causes consumers to make healthier choices or not is still up for debate: Some studies indicated that calorie counts on menus don’t ahave much of an effect on what people order — but they may be somewhat effective in encouraging the restaurants themselves to offer lower-calorie foods. However, many worry about nutritional data, like eating the ‘right calories’, not eating gluten products etc.

Food establishments are free to choose the services of qualified professionals or compute the caloric value of ingredients by using third-party software. It is likely there will be a future requirement to add additional nutritional information to help customers to make informed, healthy eating choices.

If you are seeking a specialist solution to provide and manage and compute nutritional information then contact us on 097143365589