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 and necessary adjustments should be brought about in policies and processes of the businesses companies.

How to prepare?

Businesses should comply with the Federal Decree Law No. (8) of 2017 on Value Added Tax. It outlines the VAT scope, rate, responsibility for tax, supply of goods and services at all situations.

The process of VAT is really complex, but with a lot of advantages. There are many implications. We cannot forget them. Careful planning and execution is necessary to taste success in this VAT regime.

The project preparation is the first step towards the preparation towards VAT compliance. VAT impacts all process in a company including IT systems, accounting, HR, legal teams, cashflow, inter-organizational transactions etc. and thus all the resources and stakeholders are to be informed about the changes that are adopted to tackle the implications of VAT. Accounting software is the backbone of any business, therefore, they need to be updated or upgraded with VAT compliant software.

As a second step, every business should conduct an impact assessment to comprehend VAT and its possible effects on the business. This assessment can be extended to organizational, operational and accounting levels.

Preparation of a design and implementation is the third step. All the changes required for the implementation should be assessed and all departments of business should be prepared for the changes including the training of employees.

How can GCC VAT PRO help your business VAT ready?

VAT is in force from January 1, 2018 and business that have subscribed to GCC VAT PRO software is doing well. They have fully transformed their business as per VAT laws.

GCC VAT PRO software is affordable online accounting software equipped with a lot of user friendly and customizable settings for any types of businesses. The software is used in many European and Asian counties where VAT is in practice. Hence, it has proven track record of many years of helping businesses with VAT transactions. Contact us today, to upgrade or update your existing accounting software to VAT compliant and make your business VAT ready.