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, Value Added Tax is calculated as per the value of the product or upon the price of the product. Though the rate of VAT is set as 5%, there will be flexibility among GCC countries on taxable goods and services. Certain goods and services are zero rated and some others are exempted from VAT. Transactions on the zero rated commodities, businesses can file for a VAT refund from the tax authorities. As per UAE VAT regulations, healthcare products, educational services, real estate properties are some of the exempted supplies.

VAT Implications

UAE has already implemented VAT form January 1, 2018 and other GCC member will embrace this new tax regime during the course of this year. In fact, businesses should be ready and well equipped to comply with VAT. There is no magic to fully comply with VAT. Software adaptation and a subscription to VAT compliant ERP software is the only solution. There are still many businesses that have not take any substantial steps towards VAT implementation. They are not fully aware how VAT implementation will affect their businesses. Businesses without a proper accounting software solution are not capable of calculating and applying VAT rates and manage cashflow and customers. Non compliance to VAT will incur penalties from tax authorities.

GCC VAT PRO is all set to embrace VAT

GCC VAT PRO accounting software is an indigenous VAT compliant software required for all types of businesses in UAE and GCC countries. We are global providers of software ERP solutions. We have been accepted globally thanks to our special features like affordability, transparency and user friendly applications. Using our software, you can generate UAE and Saudi Arabia Vat return on single click. It covers all business functions including sales, service, purchase, inventory, payments and accounting. In order to use our VAT compliant ERP software , you don’t have to be an experienced accountant. Our experts provide direction to handle the operations and the rest will be taken cared by the inbuilt VAT procedures in the software solution. So why to wait? Opt for GCC VAT PRO and be smarter than the changing environments!