VAT is just around the corner and due to the fact that the UAE VAT (Value added tax) is modeled after the European Union VAT policies, most of the businesses using accounting software which cannot handle the UAE VAT framework. Furthermore, over 40 percent of business isn’t using a proper accounting software for capturing several potential tax-related transactions.
Value Added Tax is a tax which is levied on consumption and it is applicable to about all sort of goods and services. Since most of the companies are aware that as part of expanding the revenue generation and diversifying the economy, UAE is going to adopt Value Added Tax which applies to most of the goods and services excluding basic food items, education, and healthcare. Although the burden typically lies on the end consumer the business units are required to change the processes, systems, and procedures for complying with the new legal framework which is going to be implemented effective 1st Jan 2018.
Listed below are some of the points which a business must consider.
• Approaching 1st January 2018, Business must register with tax authorities, however, it is voluntary for the businesses with annual turnover of USD $50,000 to register.
• It is compulsory for any business with a minimum annual turnover of USD $100,000 with respect to any 12-month period must file the tax returns.
• Business is required to consider Input and Output Tax, exempted transactions and Zero Rated Tax while filing their tax returns.
• For the businesses, the drive would be for registering and availing the input credit & not staying outside of the purview.
• Presently, software’s like Quickbooks (US edition) and Peachtree (Sage 50 US) are not compatible with UAE VAT.
1WayITSolutions offers you with a flexible VAT UAE Dubai Accounting Software. We can offer existing businesses with a software solution which is UAE VAT ready. Our Accounting software is tightly integrated, providing you real-time access to business intelligence for making better-informed decisions. And you could also automate your business process across your company. This means that your business could run in real time. Having full visibility of the financial history, companies could collaborate more effectively with their suppliers and vendors. Also, it enables them to make more efficient financial decisions over time.
Features of the accounting software
- Enhanced Decision Making
With the role-based dashboards and real-time metrics, decision making in every segment of businesses is improved.
- Increased Productivity
The automated back-office processes would increase the productivity across the business processes.
- Improved accountability and compliance
Enhanced compliance with auditable and robust accounting software unleashes the full power of the financials for the businesses.
- Totally Customizable
The accounting software is fully customizable for extending easily for meeting your exact requirements. The prevailing reports can be customizable, and also allows creating additional new reports as per the requirement.
- Robust Accounting
Robust Accounting enables businesses in integrating all of their financial processes with an all-inclusive ERP solution.
- Return Filing
The accounting software offers a complete VAT summary reports compliance. Returns could also be saved and displayed in PDF format.