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 companies that supply VAT applicable goods and services have already registered for VAT in UAE and Saudi Arabia. It is high time for others to follow suit. It is the duty of business entities to collect, submit and file for tax return on a regular biases. Hence, businesses need to bring about a lot of changes in their IT infrastructure to carry out every business operation as per VAT laws and the following points are for a serious concern.
1.      Compliance: Today, small and medium sized enterprises function with the aid of automated software. Automated software provides you efficient ways to control your business actions without any error. As VAT regulations are already in force, you need to update your automated software with VAT compliant software. This will enable all your business operations as per VAT laws and regulations. Subscription to efficient VAT compliant software will make your IT system fully compliant with VAT.
2.      Billing systems: Invoicing systems should be VAT compliant as soon as possible. Invoices generated by your accounting software should include VAT and for this to happen, you need to make it VAT compliant. If your invoices are in line with VAT regulations, you are fully ready for VAT.
3.      Training: When you upgrade your existing software, you need to train your employees and stakeholders to get acquainted with the new system. Hence, as you get your IT infrastructure VAT compliant, proper trainings must be provided to all the users to work along with the new system. Specific time and personals must be arranged to provide training.
4.      Internal Resourcing: VAT is a huge change in business operations. This new change can bring about a lot of implications in your internal resources. Identification of areas that my cause resource strains and proper steps to alleviate them will suffice the situation. Pricing and marketing policies must be adjusted in a timely manner.
How can GCC VAT PRO help your Businesses?
Preparing to upgrade your IT systems to work as per VAT laws is a huge task, but we are here to help you. GCC VAT PRO is an online VAT complaint accounting software available for monthly subscription. Subscription to our VAT compliant software helps your business to function as per VAT laws.

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