Archive for the ‘Uncategorized’ category

INTELLIGENT ORDER MANAGEMENT – ask Synergy Software Systems

September 9th, 2021

According to Microsoft commissioned research by Forrester in November 2020, 61 percent of businesses expect more than half of their sales to come from digital commerce over the next two years.

More than 50 percent of businesses report that their supply chains are unprepared to accommodate a growth in digital commerce.

 In a recent McKinsey survey of 60 senior supply-chain executives, from across industries and geographies, 85 percent of respondents reported inefficient digital technologies to address logistic disruptions, shortages of parts and materials, and sudden swings in demand caused by the COVID-19 pandemic.

Microsoft Dynamics 365 Intelligent Order Management enables organizations to intelligently orchestrate fulfillment and automate it with a rule-based system using real-time omnichannel inventory data, AI, and machine learning.

Adapt quickly to meet future order volumes and fulfillment complexities by supporting new order intake, fulfillment, and delivery partners with pre-built connectors and support contemporary collection methods like buying online for in-store or curbside pickup.  Microsoft Dynamics 365 Intelligent Order Management, is a solution that enables agile businesses with easy-to-deploy out-of-the-box connectors within a low-code or no-code environment.

Intelligent Order Management offers pre-built connectors for order intake sources to help businesses to accept orders from anywhere for example:

  • Orderful a cloud-based electronic data interchange (EDI) platform
  • BigCommerce  a cloud-based e-commerce SaaS platform.

 ShipStation is a web-based e-commerce shipping platform for merchants to quickly generate shipping labels for their online orders. By integrating ShipStation with the Intelligent Order Management platform, users can bring all their carriers and order sources together within one unified solution.

Intelligent Order Management users can also use pre-built partner connectors connect to integrate to:

  •  Avalara, an automated tax compliance solution that determines order tax rates based on geolocation and product classification,
  •  Flexe, a cloud-based platform that unifies warehouse sourcing and streamlines material handling operations.

Microsoft’s Intelligent Order Management provides a foundation for businesses to build agility and resiliency into their order management processes and to free themselves from legacy, inefficient technologies.

With internal to external ID transformation, users use different mappings with different providers. For example, a different names for the same product or SKU from an e-commerce system, such as BigCommerce, to Intelligent Order Management. This type of internal to external ID mapping is critical when Intelligent Order Management is used in complex order environments where data is communicated between many internal and external systems.

There are localized Business Event definitions and Provider definition metadata for the following languages: Arabic, Danish, Dutch, German, Italian, Japanese, and Spanish.

An enriched Power BI architecture includes a set of dashboards embedded into the user interface. The Power BI dashboards provide longer-range insights into the order and fulfillment data..

Improve order accuracy with fulfillment insights

A recent “final mile” survey by Gartner®, found that   only 18 percent of organizations report fulfillment accuracy rates of 95 percent or better.

  • What is the cost in extra administration of processing an order and shipment twice?
  •  What are the top and bottom line impacts of losing 5% or more of sales already won?

Intelligent Order Management with the new Order insights dashboard can help you to improve this key performance indicator.

To find out more contact: Synergy Software Systems: 0097143365589

Time to budget -Prophix CPM

September 2nd, 2021

Budget time will soon be upon us. COVID pandemic, climate disasters, uncertain political and economic situations such BREXIT, and Afghanistan ,require more detailed and more frequent budgets and new IFRS standards compound the challenges for Office of the CFO..

Budgets are essential to a company’s yearly plan and strategy, yet many financial leaders express dissatisfaction with their current budgeting tools. According to a 2015 research study by Prophix, 79% of finance professionals are displeased with their budgeting tools. At the same time, finance professionals understand the importance of reliable budgeting. Budgets are used to understand a company’s finances, minimize unnecessary expenses, and offer stakeholders important financial information.

Why Finance Teams are Not Happy with Spreadsheets

According to the same 2015 research study, over 70% of finance professionals depend on spreadsheets to create their annual budgets. Organizing input from multiple sources is complicated when using spreadsheets and requires time-consuming manual work to enter sort, and format data. Compiled data may be inconsistently calculated or inaccurate, affecting the yearly budget’s reliability. Performing what-if analyses on spreadsheets is headache-inducing. Simply put, spreadsheets do not offer the desired qualities finance professionals look for in a budgeting tool.

Considerations When Determining a Budgeting Tool

There are a few key considerations to keep in mind when determining a budgeting tool. First, consistency within the budget is needed as data is derived from multiple sources within the organization. Consistency is important for accuracy purposes, and because data must have high auditability.  Another consideration is automated processing capabilities. When simple calculations are automated you can focus your efforts on more complex issues. The ease of performing what-if analysis should also be kept in mind. Finally, the budget must be secure. This poses a challenge when multiple employees are contributing to the budget.

Corporate Performance Management Solution

A corporate performance management (CPM) solution addresses all the considerations listed above by automating processes and solving frustrations associated with spreadsheets. CPM software offers the calculating abilities of a spreadsheet, but with more advanced data consolidation and security capabilities. These capabilities make budget collaboration between departments simpler. Audit protection and ease of what-if analysis also appeals to finance professionals. CPM software is built for multiple users to collaborate in a secure way. Formatting is kept consistent, and the software is user-friendly, prompting users if additional input or approval is required.

As a real-world example, a consulting company that had previously used Excel for budgeting implemented a CPM solution from Prophix. Within two years, their budgeting process went from six months to four months. CPM software is a good fit for companies frustrated with spreadsheets and looking for a more efficient alternative.

With Prophix’s CPM solution, Dynamics users can budget faster and automate processes – all with seamless integration to your current ERP solution. To learn more about a budgeting solution that integrates with most finance and erp systems contact Synergy Software Systems , Prophix PArtners for MEA region

Wave 2 Dynamics 365 – many updates ask Synergy Software Systems

September 2nd, 2021

The wave 2 release of Dynamics 365 is due for October 2021 and, according to Microsoft. It will bring new innovations that provide you with significant capabilities to transform your business

. Hundreds of new features will be released across the entire suite of Dynamics 365 applications.

Finance New Features

The Finance App will see plenty of new features related to Core Financials, Finance Insights, and Globalization.

Core Financials

This release for Finance is focused on bringing additional enhancements to core financial capability, including preparing customers for a successful year-end close.

Finance Insights

This release focuses on accelerating digital transformation with AI and automation.

  • Customer payment predictions
    • knowing when all of a customer’s outstanding invoices are likely to be paid, in addition to knowing when specific invoices are likely to be paid, can help businesses optimize the start of collection activities.
  • External data for cash flow forecasting
    • enter or import external data into cash flow forecasts.
  • Forecast bank balance
    • helps companies monitor and manage their cash balances effectively.
  • Intelligent budget proposal
    • intelligent budget proposals make it easy to gather historical data from actuals or budgets to use for budgeting within Dynamics 365 Finance.
  • Treasurer workspace
    • helps companies monitor and manage their cash balances effectively.

Globalization

In 2021 release wave 2, globalization focuses on two main areas—further out-of-the-box global expansion, and simplifying compliance and globalization extensibility via no-code/low-code globalization services. Twenty new features are scheduled to be released between October 2021 and March 2022. You can view the full list of features here.

Fall 2021 Dynamics 365 Supply Chain Management New Features

One of the biggest impacts of the COVID-19 pandemic has been the disruption in supply chains. The Wave 2 Release will include features that support enhanced supply chain visibility, multiple business platform support, optimized workforce, agile planning and distribution processes, and more.

Inventory and Logistics

The release includes 13 new features to help you gain visibility, flexibility, and efficiency in your supply chain.

Manufacturing

Planning

Product Information Management

Dynamics 365 Human Resources (D365 HR) infrastructure merge. Ask Synergy Software Systems

August 17th, 2021

Microsoft is planning a set of structural changes to Dynamics 365 Human Resources (D365 HR) that will update the application’s capabilities, align its administration with the rest of the Finance and Operations suite, unify the feature set across the applications, and update licensing of HR capabilities. 

The so-called infrastructure merge for D365 HR will result in a single set of features for D365 HR that will account for overlapping HR features in the other Dynamics 365 Finance and Operations (D365FO) apps: Finance, Supply Chain Management, Commerce, and Project Operations.

After the merge is complete, D365 HR will also be able to use Dynamics 365 Lifecycle Services, issue search, and Regression Suite Automation Tool (RSAT). And it will “provide both Microsoft Power Platform extensibility, and a way to extend business logic and feature options,” according to Microsoft.

So HR is back together with the other Finance and Operations apps and you no longer have to integrate between HR and Finance.

If you have one or more of the D365 Finance and Operations apps, but don’t use the HR functionality included in these and you have D365 HR, then make sure your data is the same structure because, sometime in the future your apps will be merged and you will have the same database, so the data needs to be aligned. If you do have a big differences, then you have some work to do.

As far as I’ve read from the notes, you will now have to buy D365 HR and start using that license.  (As with Project oeprations)

If you have one or more of the D365 Finance and Operations apps and use the HR functionality included in those, but don’t have D365 HR then you get added functionality and a system Microsoft is improving

Some new HR features:

Improvements to leave and absence app in Teams

New features :

  • Users can edit or cancel their existing submitted or approved leave requests.
  • Managers can view their direct reports’ leave balances while reviewing leave requests.
  • Calendar enhancements will allow users to view a companywide calendar or their extended reports’ availability calendar, based on their roles and permissions.

Improved extensibility options

There are some functionalities in the F&O apps that will help with extensibilities, and it will be easier to use the Power Platform tools. We can also hope for improved integrations.

Manage employee sick leave

This is not planned for public preview until March 2022, with no set GA date, but its a major current gap (field by Synergy D365 GCC localised Payroll module.)

The planned functionalities are:

  • Open-ended sick leave requests.
  • Return-to-work notices.
  • Sick leave reporting.
  • Management and approval of sick leave requests.

Current licensing

The current licensing on Dynamics 365 Human Resources (as it is in July 2021) is $120 per user per month when HR is your only Dynamics 365 app. If you have other apps and those same users will have access to HR, then the attach license cost is $30 per user per month.

You must have a minimum of 5 full licenses of HR.

July 14th, 2021

SQL Server 2017 doesn’t have service packs, only cumulative updates, so this release marks something a little special: the Silver Anniversary.

For the first time, a single version of SQL Server has had twenty-five consecutive cumulative updates.

Get it here https://support.microsoft.com/en-us/topic/kb5003830-cumulative-update-25-for-sql-server-2017-357b80dc-43b5-447c-b544-7503eee189e9

IFRS 17 and IFRS9 – Insurance contracts – are you ready? Ask Synergy Software Systems

June 1st, 2021

IFRS 17 is the newest IFRS standard for insurance contracts and replaces IFRS 4 on January 1st 2022. Mainly to make the financial statement easier to compare across insurance companies and among industries

It states which insurance contracts items should by on the balance and the profit and loss account of an insurance company, how to measure these items and how to present and disclose this information.

This is a big change for insurance companies because data administration, financial presentation and actuarial calculations will need to change!

IFRS 9 explains the classification and the measurement of financial instruments. Hence IFRS 9 helps to improve the information disclosure around financial instrument. Many perceive the information disclosure around financial instruments during the financial crisis as inaccurate for example impairments on financial instruments were taken too late and the amounts were too little.
IFRS 9 makes the classification of each financial instrument more logical and principle based. There are two questions which need to be answered for the classification:
• Why is the company holding the asset; just for collecting the cash flows from the underlying asset, or is the asset also held for trading?
• What kind of asset is the financial asset? Is it a derivative, an equity or a debt instrument? With the SPPI (solely payment of principal and interest) model it can be tested whether an instrument is really a debt instrument.
The classification determines:
• which accounting principle is used;
• should the instrument be measured at fair value or at amortized cost
• and whether earnings and losses should go through the profit and loss account or through the OCI (other comprehensive income) account.
IFRS 9 also includes a more dynamic credit loss model instructing when an insurer should take an impairment on financial assets. The model is forward looking thereby also expected future losses should be taken into account with the impairment.
IFRS 9 also makes hedge accounting possibilities more rule based, thereby being in line with how risks are managed within insurers.

Why are IFRS 9 and IFRS 17 implemented together?
• The insurance liability (IFRS 17) is always closely connected to the financial instruments (IFRS 9) within insurers.
• When a client buys an insurance, the insurance liability is created and with the paid premiums are financial instruments bought.
• Insurers want to reduce the volatility in their earnings and there are some choices within IFRS 9 and IFRS 17 which they can make which can impact the volatility.
• Under IFRS 17 insurers can decide whether results of changing financial risk assumption go through OCI or through the profit and loss account.
• Under IFRS 9 insurers can decide whether changes in equity will go through profit and loss or through OCI.
Both standards will impact earning volatility and hence balance sheet management choices are connected. Consequently, the IFRS board decided it is better that insurers are granted the option to implement both standards together.

Likely impacts
• New concepts and terms are introduced. for example components like unbiased Cash Flows, Risk Adjustment, Discount Rate and CSM
• The standards will have an impact on the presented numbers. Under IFRS 17 the insurance liability needs to be based on updated assumptions which is currently not the case with IFRS 4.
• Faster disclosure is needed, which needs faster processes within the organization
• Insurance liability needs to be specified in a different way, the importance of gross written premiums disappears, while equity will be impacted.
• Risk engines are needed to calculate the CSM and cope with all the different groups
• The general ledger system will change as new measurements are introduced
• Big impact on presentation of the balance and P&L
• More data is needed. with finer granularity and with more history, which challenges internal data quality and consistency and IT performance.
• Reporting timelines are also shortened. both challenging the systems but also the cooperation between different departments.
• Staff training will be needed.

To find out more about the requirements contact us or your auditors.
To update your financial software or to acquire software to support IFRS 17 please call Synergy Software Systems on 009714 3365589


Hostage data – another cybercrime threat.

May 19th, 2021

Hostage Data

Ransomware continues to evolve with new threats. In a recent incident data was not only encrypted, but was also copied back to the criminals. Apple was the target through a supplier. The ransom note stated that without a payment, the data would be auctioned off.

So not only m business issues where you can’t access data, but also the stress of the data possibly being released or sold and who knows what GDPR and other compliance issues and costs.

While you may not work in organizations where data is worth $millions, it is still worth a significant amount, especially when its customer data. Ensure that you already have local data encrypted, and without the keys present, so that criminals can’t read your data.

With SQL Server and TDE the certificate is inside the local master database, and If someone should attach it and get access to the master database, then they could read your databases. An SMK and a DMK, might not offer adequate protection, .
.
Always Encrypted will help, unless you have lots of servers or other machines on your network with the certificates, in which case someone might be able to piece together the keys and read data.

Attacks are increasingly more numerous and creative. Backups might protect against some ransomware, but not when copies of your files are sent to criminals. So consider whether the access you allow from servers to the outside world needs to be more restricted. A challenge administrators, but they have to protect systems.

A cyber-criminal gang that took a major US fuel pipeline offline over the weekend acknowledged the incident in a public statement. “Our goal is to make money and not creating problems for society,” DarkSide wrote on its website.

The US issued emergency legislation on Sunday after Colonial Pipeline was hit by a ransomware cyber-attack. The pipeline carries 2.5 million barrels a day – 45% of the East Coast’s supply of diesel, petrol and jet fuel. The operator took itself offline on Friday after the cyber-attack.

A number of cyber-security researchers, speculated that the cyber-criminal gang could be Russian, because their software avoids encrypting any computer systems where the language is set as Russian.

The incident highlights the risk ransomware can pose to critical national industrial infrastructure, not just businesses.

In addition to a notice on their computer screens, victims of a DarkSide attack receive an information pack informing them that their computers and servers are encrypted. The gang lists all the types of data it has stolen, and sends victims the URL of a “personal leak page” where the data is already loaded, waiting to be automatically published, should the company or organisation not pay before the deadline is up. DarkSide also tells victims it will provide proof of the data it has obtained, and is prepared to delete all of it from the victim’s network.

It has a website on the dark web where it lists all the companies it has hacked and what was stolen, and an “ethics” page where it says which organisations it will not attack. DarkSide also works with “access brokers” – nefarious hackers who work to harvest the login details for as many working user accounts on various services as they can find. Rather than break int accounts and alert users or the service providers, these brokers sit on the usernames and passwords and sell them off to the highest bidders – cyber-criminal gangs who want to use them to carry out much larger crimes.

According to Digital Shadows, a London-based cyber-security firm, DarkSide operates like a business. DarkSide might have bought account login details for remote desktop software such as TeamViewer and Microsoft Remote Desktop. the cyber-criminal gang is likely to be based in a Russian-speaking country, as it avoids attacking companies in post-Soviet states including Russia, Ukraine, Belarus, Georgia, Armenia, Moldova, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

Damages related to cybercrime is set to hit $6 trillion according to Cybersecurity.  Security experts now estimate that cyberattacks cost businesses $1.6 million to recover. Even scarier: in 2019 the average time it took to identify a breach was 7 months according to IBM. According to the FBI, an average of 4,000 ransomware incidents occur daily at an annual cost of $1 billion.

In 2019 his year, following a ransomware attack, the US city of Baltimore estimated its impact at more than $18 million – a much higher cost than the approximately $70,000 ransom, which the city refused to pay.

The arms race between sysadmins that protect infrastructure and criminals that attack it has taken yet another a leap forward.

Microsoft Dynamics 365 and Power Platform 2021 Release Wave 1 – ask Synergy Software Systems.

April 12th, 2021

Microsoft Dynamics 365 follows a continuous release cycle, which means that updates are automatically applied to Dynamics 365 Online environments. Throughout the year, there are ongoing minor updates for bug fixes and performance improvements that happen in the background. There a two major releases every year: Wave 1 in April and Wave 2 in October.

The 2021 Wave 1 Release will affect Dynamics 365 and Power Platform customers. This update does not apply to on-premise customers.

Key features coming to Dynamics 365 and the Power Platform

Microsoft Dynamics 365 Sales

  • An intuitive mobile experience that offers quick and easy access to information, in real-time.
  • Collaboration with Microsoft Teams – Create activities or notes on a Dynamics 365 record from the context of a Microsoft Teams message, Access contextual list of Microsoft Teams channel and chats from within Dynamics 365, Engage in a Microsoft Teams chat from within Dynamics 365
  • Seller KPIs and manager dashboards
  • New pipeline manager workspace
  • Improvements to forecasting and predictive scoring

Read more: https://docs.microsoft.com/en-gb/dynamics365-release-plan/2021wave1/sales/dynamics365-sales/planned-features

Microsoft Dynamics 365 Marketing

  • New set of built-in analytics dashboards and cross-journey insights to improve results and achieve business goals
  • Revamped email editor, bringing a completely new way of creating engaging and relevant content
  • More channels, power, and ease to reach your customers with the right messages – Deliver push notifications to any Android or iOS app, Create and send SMS messages to any mobile phone, Search and manage your digital assets with a new centralised asset library
  • Deeper personalisation to engage your customers – Participant engagement-based communication for online events powered by Microsoft Teams, Use customer journeys to target leads in addition to contacts

Read more: https://docs.microsoft.com/en-gb/dynamics365-release-plan/2021wave1/marketing/dynamics365-marketing/planned-features

Microsoft Dynamics 365 Customer Service

  • Customer Service workspace – an omnichannel, multisession, multi-app experience that supports intelligent work classification and enhanced routing capabilities
  • Collaborate with organisational contacts within Dynamics 365 using Microsoft Teams
  • Improved embedded analytics for customer service managers
  • Enhanced Knowledge management
  • Improved user experience through email

Read more: https://docs.microsoft.com/en-gb/dynamics365-release-plan/2021wave1/service/dynamics365-customer-service/planned-features

Microsoft Dynamics 365 Customer Voice

  • Pause and resume survey
  • Survey reminders
  • Auto prefill answer
  • Integration with Dynamics 365 Marketing Customer Journey
  • Personalise survey
  • Over-survey management

Find out our top 10 new features coming to Customer Voice: https://www.pragmatiqsolutions.co.uk/blog/new-releases/new-features-coming-soon-to-dynamics-365-customer-voice/

Read more: https://docs.microsoft.com/en-gb/dynamics365-release-plan/2021wave1/customer-voice/dynamics365-customer-voice/planned-features

Power BI

  • Quick create
  • Sharing links for Power BI reports
  • Data lineage, impact, and API enhancements

Read more: https://docs.microsoft.com/en-gb/power-platform-release-plan/2021wave1/power-bi/planned-features

Power Apps

  • Improved apps discovery and selection in Power Apps mobile
  • Model-driven app adds in-app notifications
  • Improved navigation in model-driven apps
  • Enabling remote work with deep integration to Microsoft Teams
  • Export documents to PDF from a canvas app
  • Duplicate detection Unified Interface experience

Read more: https://docs.microsoft.com/en-gb/power-platform-release-plan/2021wave1/power-apps/planned-features

Power Apps Portals

  • Use Power Apps Portals Studio and Portal Management app to configure Power Apps portals.
  • Unlock advanced Portal customisations using professional developer capabilities and familiar toolsets

Read more: https://docs.microsoft.com/en-gb/power-platform-release-plan/2021wave1/power-apps-portals/planned-features

Power Automate

  • Trigger flows when a Microsoft Dataverse action is called
  • Search records in Microsoft Dataverse using relevance search
  • Manage solution-based flows
  • Improved onboarding experiences for new users
  • Connect to desktop flows without the on-premises data gateway
  • Power Automate Desktop inclusion with Windows

Read more: https://docs.microsoft.com/en-gb/power-platform-release-plan/2021wave1/power-automate/planned-featureContact UsNN

End of life for versions 7.2, 7.3, 8.1 of Dynamics 365 Finance + Operations (on-premises) – call Synergy Software Systems

April 9th, 2021

This is for all organisations who are running an out-of-date version of Microsoft Dynamics 365 Finance + Operations (on-premises) or that are maintaining respective environment slots and projects with an out-of-date version in Dynamics 365 Lifecycle Services (LCS). The lifecycle policy for this product contains the product versions which are no longer supported by Microsoft.

In the near future, Microsoft will retire those application and platform versions that have expired according to its lifecycle policy and will remove those from LCS. This will impact your organization because you will no longer be able to deploy or service the affected on-premises environments. Therefore, we strongly recommend that you upgrade to the latest release of Finance + Operations as soon as possible.

Outgoing versions of Finance + Operations require Azure Service Fabric version 6.x, which is already out of support. There is no guarantee that your Finance + Operations system will continue to function if you upgrade the Service Fabric version on the hosting system.

The following expired application releases will be removed by May 31, 2021: “July 2017” (7.2), 7.3, and 8.1.

We would like to help you get your environments up to date. If you would like to engage with us on the best way to move forward to help you get your environments up to date, please reach out!

Options:. We can help you to upgrade to the latest version of Finance + Operations (on-premises), or to transition to the online version of Dynamics 365 Supply Chain Management, or even to take advantage of the new hybrid topology for Supply Chain Management, which offers distributed workload execution in the cloud and on the edge.

For version 8.1, upgrading to the latest release is straightforward because that version includes the upgrade capability provided under the One Version initiative.

If your on-premises system is release 8.1 or earlier we strongly recommend that you act as soon as possible. :

  • Versions 7.2, 7.3, and 8.1 are long past their support lifetimes, so Microsoft is no longer obligated to support these. Be aware that Microsoft will not be able to produce hotfixes for 7.3 builds after May 2021. They are already unable to produce hotfixes for versions 7.2 and 8.1.
  • Platform updates after PU41 may not work with version 7.3 and before.

If an environment is no longer in use, please then delete the environment slot, or project from LCS to stop receiving expiration notices.

Let’s work together to bring you to a modern version of Dynamics 365!

Oman introduces VAT – Dynamics 365 and Ax users ask Synergy Software Systems

November 4th, 2020

Our experienced consulting team has considerable financial expertise in and experience of VAT implementation in the UAE, KSA and Bahrain, across all industry sectors. They can help you to assess the impact of VAT on your organisation and to assist with your VAT requirements in Oman.

We have deep experience both with Dynamics 365 Finance and Operations and with Infor Sunsystems

On Monday 12 October 2020, His Majesty, the Sultan of Oman, Sultan Haitham bin Tariq bin Taimur, issued Royal Decree No.121/2020 in relation to implementation of VAT in Oman from April 2021. announced the implementation of Value Added Tax (‘VAT’) on 12 October 2020. The VAT Law was published in the Official Gazette of Oman on Sunday, 18 October 2020. The date of implementation of VAT in Oman is 16 April 2021 (i.e.180 days from the date of publication of the Law in the Official Gazette). The standard rate of VAT in Oman is 5% and consistent with the GCC Unified Agreement, and there are provisions for zero rating and exemptions in the Oman VAT Law. By global standards, 5% is one of the lowest VAT rates implemented in the world. The online registration for VAT is not yet live but is likely to commence from January 2021.

Oman’s Tax Authority has been granted up to six months after the tax comes into force to issue the Executive Regulations. This effectively means that the Tax Authority has until October 13, 2021, to issue the Executive Regulations The Oman VAT Law is expected to come into force with effect from around April 16, 2021, which marks 180 days from its publication in the Official Gazette. The latter event happened on October 18, 2020, effectively providing businesses covered by the remit of the new tax with a six-month timeframe to get their accounting and IT systems in readiness for the implementation of VAT.

As with other tax related statutes, the VAT Law too enshrines relatively stiff penalties for defaulters. The new VAT Law prescribes prison terms of not less than two months and not exceeding one year or fines ranging from RO 1000 to 10,000 or both. The penalty is doubled for repeat offences, although the prison term may be increased by no more than half of this limit.There are different types of offences or other forms of non-compliance that are liable to attract the penal provisions of the law. Liable to be penalised are taxable entities that, among other things, deliberately fail to identify the “responsible person” – the company’s designated point of reference on tax matters.
• Similarly, legal action may be initiated if “the responsible person deliberately fails to notify the Oman Tax Authority and obtain its consent to appoint another responsible person during the period of his absence for a period of more than 90 days”,
• Examples include: unauthorised ‘fudging’ of data, failure to submit tax returns, failure to maintain tax invoices and documents in the prescribed order, failure to respond to a summons, and submission of inaccurate data in order to secure a refund.
• Belated tax payments will attract an additional tax at rate of one per cent of the tax due for every month or part of the month the tax remains due. To deter tax evasion, the Tax Authority is empowered to take necessary action in cases where it is proven that a taxable entity has committed fraud, according to the multinational professional services firm. Action may also be taken if the primary objective of any transaction effected, or activity carried out, before or after the effective date, is to avoid the tax due for any tax period, in full or in part.

The Oman VAT Law is based on the principles laid down in the Unified GCC Agreement for VAT, comprising 106 Articles which are divided into 13 Chapters.
A brief summary of the key provisions of the Oman VAT Law is given below.
• Zero rating – Subject to the conditions mentioned in the Executive Regulations, the following supplies are zero rated as per the Oman VAT Law:
• Supply of certain food products specified by a decision from the Chairman.
• Supply of specified medicines and medical equipment.
• Supply of investment gold, silver, and platinum.
• Supplies of international or intra GCC transport of goods or passengers, and supply of services in connection with this transport.
• Supply of air, sea and land means of transport that are designated for the transportation of passengers and goods for commercial purposes and the supply of related goods and services.
• Supply of rescue planes, and rescue and assistance boats.
• Supply of oil, oil derivatives and natural gas.
• Supplies made outside GCC countries in specified cases, subject to certain conditions.
• Supply of goods and services that are exempt from VAT in Oman and that are supplied to the territory outside of the GCC.
• Exemption from VAT – Subject to the conditions mentioned in the Executive Regulations, the following supplies shall be exempt from VAT as per the Oman VAT Law:
• Financial services.
• Healthcare services and related goods and services.
• Educational services and related goods and services.
• Undeveloped land (bare land).
• Resale of residential properties.
• Local passenger transport.
• Rental of properties for residential purposes.
o The Oman VAT Law also specifies certain imported goods that will be exempt from VAT such as returned goods, personal luggage, etc.
• All supplies of goods and services in Oman, except those mentioned above will attract VAT at the standard rate of 5%, subject to the place of supply provisions mentioned in the Oman VAT Law.
• Registration
o Mandatory registration – If the total value of supplies made at the end of a month, or expected to be made at the end of the month, in addition to the immediately preceding eleven months, exceeds OMR 38,500, then VAT registration is mandatory.
o Voluntary registration – VAT registration can be applied for voluntarily in case, the total value of supplies/expenditure made at the end of a month or expected to be made at the end of the month, in addition to the immediately preceding eleven months exceeds OMR 19,250.
o The registration process will be online.
o The Oman VAT Law specifies that a non-resident who makes supplies in Oman must also register for VAT as a non-resident taxpayer, irrespective of the threshold limits. The non-resident VAT registration can also be obtained by appointing a tax representative in Oman.
o The Oman VAT Law also stipulates VAT Group registration and the Executive Regulations will contain details around conditions to be met in order to register as a VAT Group.
o The Oman VAT Law mentions that the mandatory registration threshold shall be determined and amended by a decision from the Chairman of the Oman Tax Authorities.

Steps to take now
With the release of the Oman VAT Law, businesses must start preparing and ensure that they are ready to comply with the VAT requirements by 16 April 2021. The mandatory registration threshold shall be determined and amended vide a decision from the Chairman of the Oman Tax Authorities.
T
he concept of a ‘Responsible Person’ is unique to Oman and the other three GCC countries that have implemented VAT thus far do not have such a concept. The Oman Tax Authority is expected to release sector specific guides to help business in various sectors prepare for the VAT implementation.

With a very limited frame, before VAT goes live in Oman, business must immediately:
– identify team members for their VAT implementation projects (whether external or inhouse),
– assess their transactions and the applicable VAT treatment,
– assess their IT systems readiness and review their contracts to ensure a seamless VAT implementation.

Businesses need to give due consideration to transition and cut-over planning.

important VAT issues based on our experiences assisting clients in the region in relation to a VAT regime’s introduction:
• Importance of contracts and appropriate VAT clauses
• Ascertaining correct VAT treatment
• VAT registration and gathering TRN information from customers
• VAT recovery issues and VAT grouping
• VAT litigation avoidance strategies

Summary of key to focus on to implement VAT within your business:
1. Project Plan: budget for VAT implementation (e.g. consultants, training, resources, IT systems), set up VAT steering committee and assign responsibilities
2. Raise Awareness: educate and train employees on impact of VAT on accounting and reporting processes
3. VAT Impact Assessment: undertake VAT impact assessment, assess transitional provisions and classify and map VAT treatment of all business transactions
4. Cash Flow: assess cash flow impact and working capital requirements
5. IT Systems: analyse existing accounting systems capability for VAT reporting and consider upgrade or new system
6. Pricing: consider impact of VAT on pricing and demand
7. Contracts: review current contracts with suppliers and customers and include VAT clauses in new contracts
8. Processes: determine changes required to existing accounts payable processes and documentation including invoices and record keeping
9. Customer & Supplier Management: communicate with existing suppliers and customers to notify them of impact of VAT and negotiate with new suppliers and customers
10. Compliance: establish whether required or able to register for VAT and register on time.

Experienced resources will soon be in high demand, and it is best to take early guidance.

Contact us now to book a web half day briefing and assessment workshop to and to benefit from our experience.
0097143365589