VAT for Retailers in UAE

What is VAT?- VAT for Retailers in UAE

Indirect tax on the domestic consumption of goods and services, except those that are zero-rated such as food and essential drugs or are otherwise exempt such as exports. It is levied at each stage in the chain of production and distribution from raw materials to the final sale based on the value or price added at each stage .It avoids the double taxation (tax on tax) of a direct sales tax.

Advantages Of VAT in UAE:

VAT has been incorporated in all business transactions from January 1^st 2018.It will be a milestone 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. An indirect consumption tax regime like VAT is a natural progression of GCC government fiscal policy moving towards more effective and efficient tax systems in a competitive and integrated global economy.VAT could help the government to improve business conditions and maintain its reputation of being business friendly

UAE government also provides services like hospitals, roads, public schools, parks, waste control, and police which are usually covered through Government budget. However, VAT will provide with a new source of income, which will help in continuing these services at high quality. VAT is one such source of income which will provide huge impetus to the governments revenue.

Criteria for registering for VAT- VAT for Retailers in UAE

• A business must register for VAT if its taxable supplies and imports exceeds AED 375,000 per annum.

• It is optional for businesses whose supplies and imports exceed AED 187,500 per annum.

A business house pays the government the tax that it collects from the customers, but at the same time it receives a refund from the government on tax that it has paid to its suppliers.

Foreign businesses may also recover the VAT they incur when visiting the UAE.

VAT-registered businesses generally:

• must charge VAT on taxable goods or services they supply
• may reclaim any VAT they have paid on business-related goods or services
• keep a range of business records which will allow the government to check that they have got things right.

VAT-registered businesses must report the amount of VAT they have charged and the amount of VAT they have paid to the government on a regular basis. It will be a formal submission and reporting will be done online.

If they have charged more VAT than they have paid, they have to pay the difference to the government. If they have paid more VAT than they have charged, they can reclaim the difference.

VAT for Retailers in UAE

What is a Taxable  supply?

Taxable Supply is movement of goods or services in UAE which are charged at rate of 5% or 0% by a taxable person.

What is consideration?

Consideration is anything which is received in return for a supply.

When the consideration is money, the value for that supply is the amount of money received.

Consideration is VAT inclusive, so the amount of money received is inclusive of VAT for taxable supplies.

Out of Scope of VAT

Certain supplies will be considered as being out of scope of VAT for the UAE. The most obvious ones are sales outside of the country or supplies made from a non-registered entity. But other examples for out of scope would be certain government activities or supplies made with no economic benefit. This includes providing goods or services to a different department in your own business.

 

Difference between Goods and Services

Goods	Services
passing of ownership of physical property or the right to use that property as an owner, to another person	anything which is not a supply of goods is a supply of services
the place of supply is the location of goods when the supply takes place	the place of supply is where the supplier has the place of residence
example: Cross-border supplies – that is supplies which involve parties in different countries ,Water and energy , Real estate	example: Cross-border supplies of services between businesses ,Electronically supplies services – where services are used or enjoyed

 

Determining Place of supply for calculating VAT- VAT for Retailers in UAE

 

Goods

Place of supply will determine whether a supply is made in the UAE or outside the UAE for VAT purposes:

• If the supply is treated as made outside the UAE: no UAE VAT will be charged

Example: Goods Exported to UK

• If the supply is treated as made in the UAE: Domestic Supply: VAT may be charged

Example: Movement of goods from Dubai to Sharjah

• No movement of goods outside the UAE
• Subject to the applicable VAT rate in the UAE – standard or zero-rated

 

B2B Import into UAE from outside of GCC

Import of goods: place of supply is the UAE

Example: Goods delivered into UAE from UK –UAE VAT –Reverse Charge Mechanism

Goods imported to the UAE & transferred to GCC- Import followed by movement of goods within GCC

Where goods are imported into the UAE but the goods will be transferred by the importer into another GCC State, the place of supply of import is still the UAE BUT…

• The importer must pay import VAT without using the reverse charge and cannot recover this VAT
• This import VAT should be recoverable in the GCC State to which the goods are transferred

If the import VAT was recovered in the UAE under the expectation that goods would not be transferred to another GCC State, but at a future date they are moved to another GCC State, the importer will be required to “repay” the import VAT by treating the transfer as a deemed supply subject to VAT.

Goods supplied within GCC

B2B Exports to GCC

Export of goods: place of supply is the other GCC State (e.g. KSA) and the customer is registered for VAT in that GCC State and the goods are exported outside the UAE-Outside the scope of UAE VAT

Services-where the supplier has their place of residence

 

Exceptions:

• Place of supply of services relating to the installation of goods is where the service is performed
• Place of supply of services supplied to recipients who are VAT registered in another GCC State is that other GCC State unless the place of supply is the UAE for another reason
• Place of supply of services supplied by a person that is not resident in the UAE to a VAT registered business resident in the UAE is in the UAE
• Place of supply of restaurant, hotel and catering services is where they are performed
• Place of supply of real estate services is the location of the real estate.
• Place of supply of transport services is where the transport begins
• Place of supply of a means of transport to a person not registered for VAT in the GCC is where the goods are put at the disposal of the recipient
• Place of supply of transport services is where the transport begins
• Place of supply of telecommunications and electronic services is where the services are actually used and enjoyed by the recipient
• Place of supply of cultural, artistic, sporting, educational or similar services is where they are performed

 

Services – Reverse charge mechanism

 

When a VAT registered person imports services into the UAE will be subject to VAT if it is further purchased or services are used in the UAE, the VAT registered purchaser has to account for VAT in respect of those supplies

• Typically used for cross-border transactions to relieve a non-resident supplier from the requirement to register and account for VAT in the country of the purchaser

 

• The purchaser will account for VAT on its normal VAT return and he may be able to claim that VAT back on the same return, subject to the normal VAT recovery rules

 

What rate is applicable for supplies in the Consumer Business sector?

 

Rate Of Tax in UAE- VAT for Retailers in UAE

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. Tourists in the UAE also pay VAT at the point of sale.

 

Zero Rated:

As the term suggests, the tax is computed at the zero rate. The tax column in the invoice of the sold good will be zero. Only the cost of the good will be charged.

In the contrary if tax has been paid for zero rated goods, tax credit of purchases can be availed for the sold good. You will need to record any zero-rated supplies in your VAT account and report them on your tax return.

Zero Rated Items:

• Exports outside GCC
• Food items as per GCC list
• Medicine and Medical Equipment as per GCC list
• Supply of sea, land and air means of transportation
• International and Intra GCC transport and services
• Charity organizations
• Gold, silver and platinum – 99% and more purity
• First supply after extraction of gold, silver and platinum
• Supply for educational purposes and related goods and services beneficial for educations
• Residential real estate – first supply

TAX Exempt:

The Tax Exempt supplies are not charged with VAT; however any tax paid earlier on purchases of the item is not available for credit.

As an example consider a taxi service (local passenger transport) that is tax exempt and will not collect any VAT from passengers. Though it will not collect any tax it will not be able to get credit for the tax they have paid for purchase of motor vehicles.

GCC: Tax Exempt List

• Imports of goods which are custom exempt
• Local passenger transport
• Bare Land

UAE: Additionally exempt

• Residential buildings other than zero rated
• Some specific financial services – margin based

Example of Zero rated supply:

 

International roaming services are used & enjoyed outside UAE and zero-rate can be applied. Therefore the price is not increased by a positive amount of VAT. Telecom provider incurs 5% VAT on purchases which it can recover in full.

 

Example of Exempt supply:

 

The passenger receives exempt passenger transport services therefore VAT is not chargeable. Transport provider incurs 5% VAT on purchases which it cannot recover.

 

Composite supplies

 

“Single composite supply” means a supply of goods and/or services, where there is more than one component to the supply. A composite supply is taxable at the VAT rate applicable to the principal component.It

 

1. Includes a principal component, and component or components which either:
   • are necessary or essential to the making of the supply, including incidental elements which normally accompany the supply but are not a significant part of it; or
   • do not constitute an aim in itself, but is instead a means of better enjoying the principal supply;

2. The supply is of two or more elements so closely linked as to form a single supply which it would be impossible or artificial to split.

 

Examples of composite supplies in Consumer Business

 

In order for a supply to be a single taxable composite supply, at the VAT rate of the principal component, the following conditions should be met

1. The price of the different components of the supply are not separately identified or charged by the supplier
2. Consideration payable by the recipient is not affected if the recipient were to purchase only one component of the supply
3. All components of the supply are supplied by a single supplier

Example: Supply of a flight along with drinks and a meal on board

Supply of television including a warranty.

 

Date of supply: When to account for output VAT

 

Basic tax point for goods

 

• Date of movement of goods in case of supply of goods with transportation
• Date on which goods made available to customer in case of supply not involving transportation
• Date of assembly/ installation supply of goods involving assembly or installation

 

Basic tax point for services

 

Date on which performance of service is complete.

 

Exceptions – Overriding the basic tax point

 

Receipt of payment or the date of a VAT invoice if earlier than the basic tax point

 

Continuous supplies & stage payments

 

The earlier of receipt of payment, the due date of payment shown on the VAT invoice or the date of the VAT invoice

 

 

Exports to GCC with registration threshold

 

Export of Goods below AED 187,500 

 

Scenario

• Supplier is registered in UAE and sells goods from UAE to KSA
• Customer in KSA is not registered for tax
• Total amount of exports by supplier remains below the mandatory registration threshold in KSA
• Place of supply is UAE and UAE VAT is due

 

Export of Goods exceeding AED 375,000 

Scenario

• Supplier is registered in UAE and sells goods from UAE to KSA
• Customer in KSA is not registered for tax
• Total amount of exports by supplier exceeds the mandatory registration threshold in KSA
• Place of supply is KSA and KSA VAT should be charged

 

 

Imports of Goods to UAE from GCC

Imports of Goods below AED 187,500 

 

• Supplier is registered in KSA and sells goods from KSA to UAE
• Customer in UAE is not registered for tax
• Total amount of imports by supplier remains below the mandatory registration threshold in UAE Place of supply is KSA and KSA VAT is due

 

Imports of Goods exceeding AED 375,000 

 

• Supplier is registered in KSA and sells goods from KSA to UAE
• Customer in UAE is not registered for tax
• Total amount of imports by supplier exceeds the mandatory registration threshold in UAE
• Place of supply is UAE and UAE VAT should be charged

 

Call off stock & consignment stock 

Call off stock is where goods are already stored at the premises or warehouse of a potential customer, however the ownership remains with the seller until customer takes stock

Consignment Stock occurs when goods are sold to a customer but remain at the warehouse of the seller

In both scenarios care must be taken to ensure VAT is accounted for at the correct time.

 

This can become increasingly complex where the supply involves the cross border transport of the goods.

 

Intermediary structures

 

Agent & Commissionaire structures are common within the consumer business industry.

 

Agent-

In name and account of the principal

B2C service by content owner to private individual

 

Principal

 

 

Intermediary

              

                                             

  

Customer

 

 

 

Commissionaire 

In own name, but for the account of the principal

B2B service by content owner to intermediary

B2C service by intermediary to private individual

 

Principal

 

 

 

Intermediary

              

                                             

  

Customer

 

 

 

 

 

 

Warranties

 

Warranties are effectively a guarantee, issued to the purchaser of a good by its manufacturer or retailer, promising to repair or replace it if necessary within a specified period of time.

 

Two types of warranties are generally provided when goods are purchased – manufacturer/retailer warranties provided free of charge with the original purchase of the goods, and extended warranties purchased for an additional charge.

 

• The supply of a manufacturer/retailer warranty for no extra charge is treated as a composite supply together with the goods sold and follows the VAT treatment of goods
• The supply of an extended warranty is a separate supply of insurance and is subject to VAT at 5%
• The supply of replacement goods or spare parts, provided they fall within the scope of the warranty, should not normally be a supply for VAT purposes.
• The charge by a business replacing goods under warranty, to a manufacturer or entity which is funding the warranty, is a charge for a supply of services which is subject to VAT.
• Where the manufacturer funding the warranty is located outside the UAE, the supply is nevertheless subject to VAT, as the place of supply is the place where work on the goods was performed i.e. the UAE.

 

Gifts and Samples

Gifts and samples involve the disposal of business assets free of charge. They are considered to be a deemed supply for VAT purposes and the supplier will need to account for the output VAT on the value of the total cost incurred to make this deemed supply

 

Bullet Points

 

• If the value of the supply of the Goods does not exceed a set value for each recipient of goods within a 12-month period, and the goods are used as samples or commercial gifts, no deemed supply occurs. The supply of the gift and/or sample will be ignored for VAT purposes
• No gift or sample is recognized in the case of barter transactions, i.e. whereby the goods/services are exchanged and consideration is received in kind – however VAT should be accounted for on the value of the barter transaction
• In some cases no gift or sample is recognized if the gift is absorbed the main supply e.g. post paid plan with a “free” mobile phone

 

Return of goods

 

Returns involve the supplier allowing a customer to return their purchases as a result of fault, inadequacy or in some cases where a purchaser has changed their mind.

 

Bullet Points

 

• Qualification of supply: refund of original supply or exchange of goods?
• Fee or charge involved?
• Invoicing obligations
• Compliance obligations

 

Telecom and electronic services

 

Services which are delivered over the internet, or an electronic network, or an electronic marketplace.

 

The place of supply is where service is used and enjoyed irrespective of contractual arrangements.

 

Examples:

• website supply, web-hosting and distance maintenance of programs and equipment;
• the supply and updating of software;
• the supply of images, text, information and the making available of databases;
• the supply of music, films and games;
• the supply of political, cultural, artistic, sporting, scientific, educational or entertainment broadcasts (including broadcasts of events);
• the supply of distance teaching.

 

Profit Margin Scheme

The Profit Margin Scheme allows that, in some cases, VAT is only charged on the profit margin achieved on the supply rather than the full value.

 

Condition:

• The goods were purchased from a supplier who is not registered for VAT or
• the goods were purchased from a supplier who is a Taxable Person who accounted for Tax on the supply by reference to the profit margin

 

Bullet Points

 

Type of goods:

 

• Second-hand goods, i.e. tangible moveable assets that are suitable for further use as it is or after repair
• Antiques (i.e. goods over 50 years old); and
• Collector’s items (e.g. stamps, coins and currency and other pieces of scientific, historical or archaeological interest)

 

Calculation:

The difference between the purchase price and the selling price of the Goods and the profit margin shall be deemed to be inclusive of Tax.

 

 

Business Promotion Schemes

 

Business promotion schemes take many forms e.g. vouchers, discounts, loyalty programs etc. Where a business promotion scheme is operated, careful attention should be given to ensure the VAT treatment applied to the transaction is correct.

 

Bullet points:

• There is no definition of a loyalty program. Generally, they are rewards programs offered by a company to its customers who frequently make purchases. A loyalty program may give a customer discounts, free goods or services, special treatments etc.
• Where a discount is granted, VAT should be accounted for on the discounted value
• A voucher is any instrument that gives the right to receive Goods or Services against a stated value, including the right to receive a discount on the price of the Goods or Services. A taxable event occurs when the voucher is redeemed.
• The issuance or sale of a voucher is not a taxable event unless the received consideration exceeds the monetary value mentioned on the voucher.
• The supply of goods and/or services without consideration may be considered to be a deemed supply for VAT purposes

 

Hospitality – Hotels vs. Residential accommodation

 

The provision of hotel accommodation will be subject to VAT at the standard rate, whereas the provision of residential accommodation will be exempt from VAT. There are some key distinctions which indicate a supply of accommodation for someone to occupy is not residential accommodation, and therefore should be classified as hotel accommodation or similar.

 

Residential accommodation 

A building intended and designed for human occupation including:

• A person’s principal place of residence
• residential accommodation for students or school pupils
• residential accommodation for armed forces and police
• orphanages, nursing homes, and rest homes

 

Non-residential accommodation

 

A residential building is not any of the following:

• any place that is not a building fixed to the ground and can be moved without being damaged
• any building that is used as a hotel, motel, bed and breakfast establishment, or hospital or the like
• a serviced apartment for which services in addition to the supply of accommodation are provided
• any building constructed or converted without lawful authority

 

 

VAT for Retailers in UAE

What records will Retailer need to keep?

Records need to be kept for at least 5 years.

Retailer will have to keep:

• records of all supplies and imports of goods and services;
• all tax invoices and tax credit notes and alternative documents received;
• all tax invoices and tax credit notes and alternative documents issued;
• records of goods and services that have been disposed of or used for matters not related to the business, detailing the VAT paid on those goods and services;
• records of goods and services purchased for which the input tax was not deducted; • records of exported goods and services; and
• records of adjustments or corrections made to accounts or tax invoices.

In addition, you will need to keep a VAT record or account which shows:

• output tax due on taxable supplies;
• output tax due on taxable supplies accounted for under the reverse charge mechanism;
• output tax due after the correction of any errors or adjustments;
• input tax recoverable on supplies or imports; and
• input tax recoverable after the correction of any errors or adjustments.

Moreover, like all businesses, retailers will have to keep accounting records and documents that relate to  business activities.  Such records and documents, include:

• balance sheet and profit and loss accounts;
• records of wages and salaries;
• records of fixed assets;
• inventory records and statements (including quantities and values) at the end of any relevant tax period and all records of stock-counts related to inventory statements

I have several shops: do I need to register them separately?

No.  All the business operations carried on by you as a taxable person can be dealt with under a single VAT registration.

Can I form a Tax Group?

Related businesses that share economic, financial and regulatory ties (either in law, shareholding or voting rights) may be able to register as a Tax Group, if they have an establishment in the UAE and are legal persons under common control.  Transactions between the group members are disregarded and one member of the group, called a ‘representative member’, will file a consolidated VAT return covering the activities of the group

How do I account for VAT on my sales?

All VAT registered businesses in the UAE are required to issue tax invoices when they sell goods or services.  As a retailer, most – possibly all – of your sales will be to consumers, rather than to other businesses.

Hence, you may issue a simplified tax invoice showing the following:

1. The words “Tax Invoice”.
2. Your name address, and Tax Registration Number.
3. The date of issuing the Tax Invoice.
4. A description of the Goods or Services supplied.
5. The total Consideration and the Tax , amount charged.

The sum of the tax amounts charged on all your invoices issued during a VAT accounting period will be the output tax that has to be declared on the tax return covering that period.

Can I reclaim the VAT I pay on business purchases

Yes.  As long as you have a Tax Invoice showing the VAT charged by your suppliers, and have paid for the goods or services concerned, you can reclaim the VAT on most of the goods and services you buy for your business.

The sum of the tax amounts charged to you during a VAT accounting period will be the input tax that is declared on the tax return covering that period

How do I account for VAT on returned goods and refunds?

If a customer returns an item and the retailer provides a refund then the retailer needs to issue a tax credit note and can reduce the output tax payable by reference to the amount of the refund. The output tax reduction should be made in the VAT accounting periods in which the refund is given.

Do discounts and promotional offers alter the taxable amount?

If a retailer offers a discount on the normal selling price of an item, or reduces prices in a seasonal sale for example, or perhaps offers “Buy One Get One Free”, then the reduced price actually paid by the customer is the consideration.

How do I calculate the tax included in the consideration received from the customer?

The VAT included in any price is equivalent to the consideration divided by 21.

When will I have to pay any tax due?

You will be required to pay any tax due by the due date for each return – i.e. by the 28th day of the month following the end of each Tax Period (or on the next working day if the normal due date falls on a national holiday or weekend).

Is there any input tax that I cannot reclaim?

Yes.  The VAT incurred on entertainment expenses, motor vehicles used for personal purposes and employee-related expenses cannot be reclaimed

When will I receive any repayment that I claim?

Where you are in a repayment position, the FTA will inform you that any repayment claim that you make has been approved or rejected within 20 working days.  On occasion, however, the FTA may inform you that consideration of the claim will take longer than that

VAT for Retailers in UAE

Retailers VAT Implementation strategy

 

Companies have to upgrade their accounting software and financial systems to map all elements of the tax chain, including collecting VAT from customers, recording VAT input credit on purchases, agreeing exemptions and rebates, and paying collected VAT revenue to the government.

Key recommendations include continually monitoring tax developments and updates, assessing the financial impact of VAT on their business models, internally reviewing financial systems to assess overall tax readiness, upgrading points of sale systems to capture VAT-related information, determining intra-group transactions and dependencies and re-visiting contract clauses dealing with price and taxes.

Reach Accountant Online VAT Accounting Software

 

It is very essential that businesses use a software which will enable the task of maintaining records and managing accounts efficient. Businesses should carefully evaluate and decide a software which will help them in maintaining systematic and error-free accounts and records with compliance validation. The business software should be their instrument for compliance under VAT while helping them maintain their focus on the core business activities.

 

Need to upgrade to Reach Online VAT Accounting Software :

 

Reach Accountant software is well designed to match all the needs for successful running of the business. The software can be used in different industries ,traders ,manufacturers, retailers,  workshop ,business projects etc. It is an online VAT accounting software that can automatically manage your book of accounts, taxes, inventory, sales, purchases and more online quickly and securely.

 

Benefits Of Reach Online VAT Accounting Software

Reach Online accounting software systems are rapidly evolving, giving business owners the ability to choose how and where they manage their finances. Whether at home or on-the-go, business owners are now able to execute administrative functions such as instantly viewing bank balances, tracking expenses, sending invoices ,supervising the work flow of branches through Reach online VAT Accounting Software thus making business more viable.There are many advantages of using an online accounting system including:

Reach online VAT accounting system can help you manage your business by improving your recordkeeping processes and give you the tools you need to analyze business results and make sound financial decisions.

• Online Access 24/7
• Cost
• User Friendly
• Technical Support
• Efficiency
• Analysis –
• Security and Accuracy
• Inter Connectivity of Branches:
• Opportunities
• Scalability

 

Top Features of the Reach OnlineVAT Accounting Software are:

• Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

• Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

• Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

• Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
• 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 Invoice 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

 

• Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.

• * VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

• Receipt: Receipts can either be manually entered or imported it in excel format easily.
• Payments: Payments can either be manually entered or imported it in excel format easily.
• Multi Company: Manage business through comfort of the smart phone.
• Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
• Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some featuress mentioned.
• Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.
• Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.
• Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website.

 

• Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.

 

• Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free.

 

• No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers.

 

• API: The client can integrate the existing software with Reach accounting application ,
• Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure

·         User Interface & Complexity:The software is designed to make its use friendly and easy,no cumbersome process to operate the application and software.

• Scalability:It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.

 

Top Two Features of the Reach Accounting Software

 

• Outsourced Accounting: The software enables to finish the outsourced accounts in less than 30 minutes.

 

• Real Time Accounting: Allows client to record sales and purchases online, while finalizing accounts that is checking the Audit trail, providing MIS reports, checking Tax reports, printing financial reports and filing taxes.

 

Technology Used

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud accounting software that is easily accessed online and an attractive option for large or small business owners. Companies that use cloud accounting require less initial server infrastructure to store data and don’t require IT staff to maintain or update the cloud accounting system. Get the spectacular benefits of cloud accounting as you seamlessly integrate with the powerhouse

Benefits of cloud accounting:

• Streamline billing and ordering processes
• Capture and store financial data to most accurately model and report on your finances
• Use Chatter to enable more effective collaboration across your organization
• Greater return on investment and real-time, multi-dimensional financial analysis