Top VAT Software provider in UAE

What is VAT?

It is a form of tax that is charged on the domestic consumption of goods and services except for that   are zero rated such as food, medicines etc and on the goods and services that are classified as “Exempted” broadly on exports. The tax is levied at every stage from procurement of raw material, production and till distribution chain that is up to sales. The amount of VAT the user pays is on the cost of the product, less the tax that has already been paid during the production cycle. This form of taxation (VAT) ensures there is no double taxation of the same product or services.Further we will discuss Top VAT Software provider in UAE

Impact Of VAT in UAE:

VAT will come in effect to all business transactions from January 1^st 2018.It will be a positive reaction for UAE as it will generate revenues for development of infrastructure and economic growth of the country. It is estimated that with the introduction of the new form of taxation “Value Added Tax” the economy may raise its annual revenues by Dh 12 billion in the first year of implementation of the VAT system. Gulf Cooperation Council (GCC) decided upon the implementation of VAT system as being one of the steps to diversify revenues due to the fall in oil prices. Tax reform was top priority in UAE succumb to the fall in oil prices and revenues. This fall in oil prices also affected real estate industry impacting the economic growth of the country.

Rate of Taxation:

Taxation rate in UAE will be 5% on all goods and services. Government has decided upon the marginal rate of 5% in the interest of the residents, as purchasing power of the consumer will not be hampered to an extent. Thus implementation of VAT will not have adverse effect on the people who are on the lower end of the spectrum.

However GCC has agreed on three VAT rates that will levied by the member states at the time computation of tax:

• Standard Rate
• Zero Rate
• Tax Exempt

Standard Rate

The rate of 5% will be applied on the all the business sectors.(does not hold good for zero rated and exempted goods).It is mandatory  that all  invoices feature tax value separately and then be added to the final bill value. All invoices must also display VAT registration number to enable buyer to claim VAT credit.

Registration Of Business Entities under VAT

A company whose annual turnover is equal or above AED 375000   should register i self under the Federal Law before 2017. If the Annual Turnover is between AED 187,500 & AED 375,000/, it is optional for the company to be registered under UAE VAT law. Further, if it is less than AED 187,500/, the company need not register under this law.

However, for the ease of the business, supplier may not be registered if the business does not make any supplies which are eligible for 5% tax. %. If exception from registration is granted, then you will not submit regular tax returns and you will not be able to recover input tax incurred.

Is Your Business VAT Ready?                                                                            

1st January, 2018, is the expected date for VAT Implementation in UAE. The time available,can be counted in hand now it is crucial for businesses to prepare themselves towards the new taxation system and be ‘VAT Ready’. Being ‘VAT Ready’ does not mean your readiness as on 1st January, 2018, it signifies about readiness for VAT in all the aspects of daily transactions which involve money, goods and services.

First of which is about ensuring that all the financial transactions are recorded and books of accounts are accurate and up to date. This is because, the books of accounts will act as evidence for minimum annual turnover threshold limit for registration and on this basis, either you will be mandated to register or you can request for exemption from registration.

Secondly, being ‘VAT Ready’ means, you have to charge VAT on supply of taxable goods and services, account the VAT paid on the purchases such that Input tax deduction can be claimed and finally, you have to file online VAT returns on a regular basis, disclosing the details of VAT charged and paid.

Therefore, the first immediate step toward VAT readiness will be to explore the best VAT Software which will not only help you to be VAT compliant tomorrow – when VAT is implemented in the country but will also help you transit seamlessly into the new VAT era.

Apart from exploring the best VAT Software, it is imperative for businesses to understand the fundamentals of VAT and the business implications. We foresee that businesses may have to make changes to their business operations, financial management, book-keeping and so on, to fully comply with the VAT requirements.

The following are few head ups for being VA T ready:

1. Explore best VAT Software – Adapt and Align with your business activities
2. Build the organizational competency by educating your teams on the fundamentals of VAT and its impact on your business
3. Review your business processes, practices and procedures – mainly pricing, procurement, invoicing, logistics etc. in line with VAT requirements and align accordingly
4. Ensure books of accounts are accurate and update date
5. Inform your vendors and customers about VAT and subsequent impact on transactions
6. Preparation &Transitioning to VAT

Top 5 VAT software Providers are

Easy Accounting

Tally

Pinnacle Technologies

Reach Accounting

GCC VAT PRO

About the Company and the features of the product

Easy Accounting

EasyAccounting provides you with respectable and certified accounting services that you demand. The services offered meet a wide range of both corporate and personal needs.

Features of VAT Software are:

Company VAT status

Assistance in Registration

Invoicing

VAT reporting

Obtain up to date information about VAT rules and regulation.

Pinnacle Technologies

With a continuous commitment to quality, reliability and customer satisfaction, Pinnacle Technologies have built a reputation for being the trusted IT partner for businesses, providing with the cutting edge technology solutions that best suit the evolving needs.

• Business Intelligence Reports, Reminders (automation option enabled) and Key Business Process Indicators
• Make Quick Decisions with Real time informationon the go.
• Customized and Accurate Reports reliable for reference.
• Customize your processes to cater to Industry specific

GCC VAT PRO

A simplified cloud based ERP solution with complete VAT compliance with low subscription. 

Features of the product 

Accounting:VAT Return, VAT Statement, Bank Reconciliation, Journal Entry, Balance Sheet, Profit & Loss Statement.

VAT based Features

1. System generated VAT Return Report for UAE and Saudi Arabia,
2. Inbuilt VAT Calculation, VAT Accounting and VAT Reporting,
3. No need of VAT and Accounting Experience,
4. Automatic determination of appropriate VAT Period, Rate and VAT
   treatment for each business transaction,
5. Automatic detection of VAT adjustment for current and previous period,
6. Fully Traceable VAT AUDIT Report,
7. VAT Payment, VAT Return, VAT Carryforward,
8. VAT Compliant Invoices and Payment Receipt in Arabic and English,
9. Deductible and Non Deductible VAT Treatment,
10. VAT Records in both local and Foreign Currency,
11. VAT on Inventory Adjustment

Tally Solutions

Tally. ERP 9 is a business management solution and VAT compliance software. With a combination of function, control and customisability built in, Tally. ERP 9 permits, business owners and their associates to manage more.

Software Features

Recording Invoice

Print Tax invoice in Arabic

Error detection and prevention capability

Generating VAT reports

Interface of software

Reach Accountant

Reach is`the ultimate destination to use software which suits 21 different business with end to end process. You can use Reach instead of using multiple software for different functions or trying to create a customized software. Reach software are VAT complaint which simplifies business.

Being a resident of UAE or business entity it is mandatory to align business operations as per the new taxation reform. There would be many questions and perceptions running in one’s mind. One of the important concerns would be will the business be affected if new prescribed rules and regulation regards to new taxation system are not adhered. Like filing returns on time, maintaining accounts of books ,generating invoices as per VAT mandate. A mentor preferably who can be there at all time to assist and answer all the queries relating to VAT. Reach VAT software is the perfect solution proving to be your best companion in the VAT transition period.

Reach Extended services can be availed by:

The above industries can avail the benefit of using Reach VAT Software to be VAT compliant.

Features Of VAT software:

Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

Print tax invoices in Arabic: Reach Software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.

Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.

Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.

Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any.

Mobile Application: Reach Software provides you the facility of managing business from any geographical location .The mobile application service sends you alerts as to which employee has dealt which transaction of the business process, this provides check and control measure, to track and record taxable transaction.

Tally Import: Import excel files from tally to Reach software and manage accounts with smooth transitions.

User Friendly: Software are designed is such a way that the user will find it easy to operate.

Software Integration: The client can integrate the existing software with Reach software seamlessly.

Security: Reach VAT software ensures security of all the confidential business information avoiding any kind of loss to the business.

Miscellaneous Add-ons: E-stores, Google docs, Google calendar , SMS gateways, Payment Gateways are few to name.

Pricing of the software: No upfront investment, Low monthly rentals, free servers, free routers, LAN, Network cabling not required, Anti-Virus not required, free data backup.

Technology Used:

Our products are hosted on the Cloud and delivered to customers on a subscription model. It allows business applications integrate seamlessly. It can have all your employees working on business data at the same time and allows you to check how your business is doing at the comfort of your home.

Benefits Of Cloud Computing

Selection Of Type of Cloud Hosting Services:

As per the size of the organization we at Reach offer you the below mentioned services to suit your business requirements.

Software as a Service: Service provider gives ready to use ,centrally and remotely  hosted web application to the customer.

Infrastructure as a Service: Firms outsource their IT resources and equipment such as networking,data centres space and ,storage .

Platform as a Service: IT  end to end solution are delivered from sourcing equipment to configuraton.

Anything as a Service: Other IT related issues are addressed and services are provided.

Comparison between Different VAT Software products

Looking at the above comparison table we can conclude Reach Accountant VAT software would be an ideal solution suiting your business needs be it small or medium scale business or industry.