GCCVATPRO

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...

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...

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...

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 a...

UAE and Saudi Arabia have implemented VAT from January 1 st 2018 and other GCC countries have agreed to implement it within this year. Businesses operating from these countries should prepare for this transformation in advance. Companies in UAE and Saudi Arabia already aware how new tax law is going to affect their business operations and are taking necessary steps to integrate it within their system. Revenues from oil and gas sufficed the government led developmental activities in GCC countries but starting from 2014, income from these sources came down considerably. Revenues from other sources are insufficient for public welfare activities. Hence, implementation of VAT is in force in these countries. How Does VAT Works? More than twenty percent of the world revenues come from VAT as the number of countries that have implemented VAT has exceeded 120. VAT is a consumption based indirect tax. VAT is charged on sales both to other businesses and to ordinary consumers if you are...

1.       GCC VAT PRO GCC VAT PRO is the most simplified Cloud based ERP solution with complete GCC VAT compliance capable of taking your business to the next level. It covers wide range of business operations including sales, service purchase, inventory and payments and more. 2.       Zoho Books Zoho Books is a VAT ready accounting software that lets you send invoices, reconcile bank transactions, track inventory, generate reports, and file VAT returns effortlessly. It is easy to use and highly sophisticated software. 3.       QuicBooks QuickBooks is a VAT accounting software made for small businesses. It is simple software that enables businesses to make efficient leads. Arranging bills, receipts, and payments, able to entertain many customers at the same time, control on payroll and analyzing all the reports are covered in it. 4.       Sage Accounting Sage Accounting i...

How GCC VAT PRO VAT software enable your existing ERP VAT ready? What is UAE VAT? The government of UAE has implemented Value Added Tax from January 1, 2018. The Federal National Council (FNC) approved draft law in March2017 and the president His Highness Shaikh Khalifa Bin Zayed Al Nahyan approved it and issued the landmark Federal Law No. 7 in July 2017. The tax procedures law that received presidential approval is a significant milestone towards tax implementation in UAE. The law covers procedures of tax, audits, objections, refunds, collection and obligations. It also include tax registration, tax return, submissions, payments etc. and existing software in companies are not compatible to run all these functions efficiently. Therefore, there is a need for business organisations and individuals to subscribe for VAT compliant accounting software. An Overview of UAE VAT o    UAE VAT started on January 1, 2018 o    The UAE VAT rate is 5% o    ...

The UAE government has implemented VAT on January 1, 2018. It is the product of careful planning and thought over the last few years. VAT levied is 5% on products and services except those exempted such as basic food items, educational services, health care products and social service. VAT is implemented in UAE along with Saudi Arabia and the implementation of VAT will be expanded to other GCC countries within this year. It is a new regime in the economic history of these countries. VAT and Businesses: VAT is an indirect tax levied on each step of development of a product and it is the end buyer who has to pay it. General public is the end buyer and thus the living cost of general public will shoot up considerably. Business firms in UAE have to comply with VAT for smooth sale of their business. Accounting software of every business should comply with UAE VAT. GCC VAT PRO has introduced accounting software that will integrate or replace ERP system of every business firm to comp...

It is high time for businesses in Gulf Corporation Council to be ready for VAT as it is already implemented in UAE and Saudi Arabia and Qatar, Oman, Kuwait and Bahrain would implement it between 2018 and 2019. The reality is that many of the business firms are not ready for VAT yet. Key Features of GCC VAT The rate of VAT in GCC would be fixed and it is 5%. Food items, education, public transportation facilities and certain financial services would be exempted from VAT. Some products and services are zero rated. B2B supplies in the GCC region will be zero rated. Exports are charged with VAT. The companies conducting business on taxable items should register for VAT and the registration for VAT is set as $100,000 per annum. Areas of Impact All the businesses in this region will be directly impacted by VAT. Businesses need to make scores of decisions regarding conducting business in the VAT regime. VAT does not mean you have to take care of your accounting alone. VAT will affe...

The much awaited VAT has become a reality in UAE and Saudi Arabia from January 1, 2018 and other GCC countries including Qatar, Oman, Kuwait and Bahrain will implement it in this year or in the early next year. Businesses operating from these countries do not have much time to prepare for VAT. Hence, we exhort you to take necessary steps for being VAT ready in advance. EY has conducted a survey and the result shows that more than half of the business organisations in GCC countries have not thought of being VAT ready in advance. There are reports of business organisations underperforming due to their lack of being ready for VAT in UAE and Saudi Arabia. In order to avoid such circumstances, every company in GCC countries should be prepared for VAT, otherwise, there will be huge loss. Businesses organisations operating from this region can take a vital step of subscribing to cloud based ERP software for them to be VAT ready. Every company that run on a computed ERP solution need to...

Implementation of VAT is the hot topic of discussion among GCC nations including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates for the last few years. The income of governments in these countries have come down considerably due to fall in oil prices. Therefore, GCC countries came together and decided to introduce Value Added Tax to increase revenue for the governments in this region. The members of GCC confirmed that they would introduce VAT between 2018 and 2019 and Saudi Arabia and UAE have already implemented in it from January 1, 2018. Finance Ministry of Oman has confirmed VAT would be a reality in the country from October 2018 and other countries would follow suit soon. The rate of VAT agreed among GCC is 5% and the member countries can decide on the taxable and non taxable goods and services and can document legislation locally. In general, food, medicine, education and financial services would remain tax free. Gulf nations are sources of financia...

GCC countries including Saudi Arabia, Oman, UAE, Qatar, Bahrain and Kuwait came together and drafted a landmark Value Added Tax treaty to be followed among them. Treaty also can be termed as a framework of agreement. It is the base for the domestic tax legislation in each member countries. The treaty constituted of basic principles for every state to follow when VAT legislation is conducted. Hence, it is a document and not a law. When this article is written, Saudi Arabia and UAE have started VAT regimes in their countries. They implemented VAT from January 1, 2018. They have conducted domestic VAT legislation as per the GCC VAT treaty. The treaty provides the basic function of VAT in all the member countries. GCC VAT treaty provides all the functions of traditional VAT system. One might wonder whether the GCC VAT is more similar to EU VAT or newer versions followed by countries like Singapore or New Zealand. Commentators and financial experts find similarities to both EU and mode...

UAE and Saudi Arabia have implemented VAT from January 1 2018 and every private business entity should have VAT compliant ERP software for their business to be VAT ready. VAT compliant does not mean that tax calculation alone. Every business has to adopt VAT compliant software to carry out all their business functions as per VAT laws. Depending on the nature of business, every business that has registered for VAT should submit for tax returns monthly or quarterly. As far as VAT compliance is concerned, every computer automated business should update their existing ERP with VAT compliant software solutions to transform their business to function as per VAT laws. In order to help business organisations, QUALITY HORIZON Pvt. Ltd. has introduced the most simplified GCC VAT ERP Solution for UAE & Saudi SME’s. It is available online at very low monthly subscription. A monthly subscription to GCC VAT ERP software will take care of your sales operations, accounting, generating tax re...

The Finance Minister of Bahrain, Sheikh Ahmed has confirmed that the country will implement Value Added Tax by the end of 2018. The rate of VAT will be 5% as agreed among GCC countries. As of now, the date of implementation is fixed as October 1, 2018. Not Ready for VAT till the end of 2019- Bahrain, Qatar, Oman and Kuwait According to IMF, Bahrain, Qatar, Oman and Kuwait are not prepared to launch Value Added Tax till the end of 2019. As part of GCC countries, all of them had agreed to launch VAT and Saudi Arabia and UAE have already implemented it from January 1, 2018. Bahrain all set to Launch VAT in October 2018 Bahrain is likely to embrace VAT system from October 2018. The reports on news paper states that the Finance Ministry has decided to implement VAT of 5% from October 2018. The Ministry of Finance also has stated that health care products, education and transportation facilities will be excluded from VAT. The VAT registration threshold is set as $ 100,000 and the ...