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VAT Compliant ERP Software

UAE has been a tax free zone for years due to high revenues from sources like gas and oil. The situation has changed due to high global competition and fall in prices of oil and gas. UAE along with GCC countries have decided to implement taxes especially VAT. VAT is on roll in UAE from January 1, 2018. Various types of taxes There are various types of taxes practiced in almost all the countries. These taxes are: income tax, property tax, sales tax, road tax, and Value Added Tax and the like. UAE and GCC countries where free of taxes, but have opted to implement Value Added Tax in 2018. VAT will be levied on selected goods and services. Slight increase in prices of goods and services will be the effects of VAT in UAE and GCC countries and it will be reflected in the cost living of the people in this region. What is VAT? VAT is collected by a registered business organisation from its customers i.e. every taxable commodity will incur 5% added tax on it. As the name suggests, Va
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VAT Compliant ERP Software in Dubai

GCC VAT PRO is Fully Ready for VAT GCC VAT PRO is global software and accounting solutions provider. We assess and execute customer oriented solutions that fully comply with existing as well as new laws and regulations. We have devised the latest VAT compliant accounting software for GCC countries as the implementation of VAT is due this year. Businesses can upgrade their existing ERP system or fully replace with our software. Our software has proven track records in most of the VAT implemented countries. Now we have redesigned it to suit the VAT laws of GCC. Contact one of our representatives to know more about it and subscribe. What is VAT? VAT is a tax on consumption of goods and services. It is set as 5 percent in GCC countries. Compared to the VAT rates in other countries, it is the lowest. Some countries of Europe and Asia charge up to 20% of VAT. VAT is charged at each stage of the supply chain. Manufacturer, wholesaler and retailers add value to the product and in ea
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UAE VAT – Things You Should Know

VAT is an indirect consumption tax applied to products and services that come under taxable items. There are a number of products and services exempted from tax and it varies as per member countries in GCC. VAT in UAE has been implemented from January 1, 2018 and rate is set as 5% throughout GCC countries. The introduction of VAT will burden consumers as the end buyers are the tax payers. Cost of living is expected to rise. Given the lowest VAT rate, cost of living may vary and will greatly depend on one’s spending habit and life style. There are taxable and nontaxable goods and services. If people mainly spend on goods and services that are exempted from VAT, they will benefit greatly. GCC countries have unanimously agreed to impose 5% VAT and tax exempted goods and services may vary according to the member countries. Effects of VAT on Businesses Businesses have great responsibilities in this VAT regime. They have to carefully document their profit, cost and VAT charges. A b
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GCC VAT PRO is ready for VAT Changes in the UAE

A highly prospective VAT regime has been started in the UAE from January 1, 2018. The broad agreement on VAT will be implied in all the GCC countries within this year. Regarding taxable products and services, exempted items and zero rated items, member states will have some flexibility. VAT is not a tax on business, but collecting it and remitting it to the government is the duty of business firms. It will also lead to compliance costs. Cashflow implications are another cause for worry. In order to understand the implications of VAT on supply chain, proper assessments should be conducted. Businesses also are required to fulfill their obligations to VAT costs and accounting. VAT also will have implications on automated software systems in businesses. VAT ready means updating or upgrading your accounting software and other IT related systems in business to correctly deal with input and output VAT. In order to comply with VAT rules, governmental policies must be perfectly reviewed an
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VAT and Businesses: What are the Impacts?

UAE has implemented VAT from January 1, 2018. Let us look into what impacts VAT implementation may cause on businesses operating from this region. Businesses in this region have been operating in a low tax environment and now VAT compliance for all their operations and financial systems is mandatory to function error free in this new tax regime. Though the situation calls for a lot of adjustment in all business operations including pricing, skills required and IT infrastructure, the new tax system will bring about a lot of positive inputs to every business and economic development of the region. Why VAT? There are clear cut reasons for the implementation of VAT in UAE and GCC countries. The economy of the region was greatly based on the oil and gas prices but now the revenues from these sources have come down due to fall in price and global competition. Hence, the situation calls for government authorities to look for alternate revenue sources for developmental activities and t
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Are you VAT Ready? What Changes Businesses should bring about in their IT System?

VAT has become the most significant topic of discussion ever since GCC countries started to look for alternative revenue sources to fund their public and developmental activities. It was mandatory when oil and gas prices continued to fall and revenue from their business came down considerably. UAE and Saudi Arabia have already started to conduct their business transactions according to VAT laws from January 1, 2018 and other member countries have agreed to implement it within this year. At the wake of VAT regime, businesses have to bring about a lot of adjustments in their operations especially in their IT system. Along with every business activity, including pricing and marketing, it also impacts your IT system. Basic Facts about VAT As of now, UAE and Saudi Arabia follow 5% VAT and other countries may come in line without much delay but the rate of VAT may vary. According to UAE ministry of finance, businesses need to register for VAT. It is an online registration. Most of the
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VAT in UAE: What Business can do to Comply

The UAE and Saudi Arabia implemented VAT of 5% from January 1 2018 and goods and services of essential nature are exempted from it. Other GCC countries are to follow suit shortly to diversify their sources of revenues given the scenario of prices of oil and gas falling considerably and revenue from them is very limited. At this juncture, the most significant question is: Are you VAT ready? Most importantly, businesses should make their accounting system comply with VAT laws and thereby a smooth transition to VAT regime is possible. Businesses should assess the main aspects of their operations to comply with vat including: Ø   Identify the products and services that fall under VAT Ø   Formulate effective strategies for pricing and competition as VAT will bring about a new turn in the business operations Ø   Identify how accounting and business systems will be impacted by VAT and adopt necessary measures to transform them to compliant with VAT. Ø   Evaluate all the business rel
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