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VAT implementation expenses

Luxman Shankar's Profile

VAT will be implemented in GCC effective 2018. In order to be compliant, we have engaged consultants to help us with the following:
1. Understand VAT implications on our products and services
2. Assign the VAT percentages on our products and services
3. Train employees
4. Advise changes to our ERP and other IT systems
5. Configure the changes in our ERP and other IT systems

Can these expenses be capitalized under IFRS?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

My inclination is no.

It would seem to me that the consulting is of a generic nature (vs an implementation or a software program upgrade).

In any event you should consult with your accounting and/or auditing firm.

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