Oracle study explores VAT as a driver for digital transformation
73% of businesses see VAT implementation as an opportunity begin digital transformation
Ahead of the Gulf Cooperation Council (GCC) countries' introduction of Valued Added Tax (VAT), Oracle, in close collaboration with Harvard Business Review (HBR), have conducted a study that explores how VAT is acting as a driver for digital transformation.
The study found that 73% of respondents saw the VAT implementation as an opportunity to engage in wider digital transformation projects within the organisation. Additionally, 66% of respondents shared that they would consider transforming their business processes from on premise platforms to the cloud in the instance where major cost savings could be achieved.
Arun Khehar, SVP - SaaS, ECEMEA, Oracle, said: "Cloud adoption across GCC countries is growing at a rapid pace and becoming mainstream as businesses now realise that cloud applications offer them speed, innovation, security, and better return on investment. IDC estimates that Public Cloud spending across the META region will reach $715m in 2017 and VAT compliance is expected to further drive this trend."
"There are several benefits of placing tax functionality in the cloud, as the applications are updated by vendors on a regular basis; if the amount of VAT changes, or if another tax regulation is put in place, system upgrades will be automatically rolled out with the next release. More importantly, with VAT in the UAE and Saudi Arabia taking effect on 1st January 2018, it is important for organisations to ensure timely preparedness, which an ERP Cloud solution can achieve within weeks."
Conducted from June - July 2017, the study, which was compiled with responses from 450 GCC-based senior company executives, also delved into VAT readiness. The study found that 21% of respondents had begun to prepare their systems for VAT compliance, while 30% reportedly lack information on VAT. Another 47% are still awaiting guidance from local governments before proceeding further.
Aarti Mohan, ERP and EPM application strategy leader, Oracle, said: "With just a few months until VAT goes live, many companies urgently need to change their business processes, IT systems, and scale up their workforce.
"Our advice to all businesses is to start now with a 360 assessment across the business to evaluate the potential impact and transformation needs to quickly become VAT-compliant."