If you own a business or trade in any of the gulf countries, you are liable to pay a certain sum as taxes to the government for running your business. This tax could be either sales tax, goods and service tax or even value-added tax which is also known as VAT. Since January 1, 2018, the UAE government has imposed this tax system for which consumers have to pay a VAT of 5% on every good or service they purchase.
It is not always possible to keep a track of the taxes levied on products at each stage of its implementation by a company and this is why there is various software available online to track your production, marketing and the VAT which you are bound to pay. Even though the end consumers of goods and services are the ones liable to pay the VAT, however, it is the company which collects the taxes and hands it over to the government for the better functioning of the economy.
Since such huge amounts of taxes cannot be risked on the calculations of a human being or machine, the software is used to serve the purpose. Some of the well-known software you can access includes ERP 9, QuickBooks, Sage & Peachtree, Zoho, etc. Out of these, Tally ERP 9 can be claimed as the most trusted source of calculating VAT in UAE since it has been accredited by the Federal Tax Authorities of the United Arab Emirates.
VAT Software Changes
You likely need to put in your business details in the software by which the value-added tax could be calculated and displayed. However, many times there are some errors or wrong inputs made which could be changed by the software. Even though some changes are irreversible but some can yet be edited or amended. You will spot sections whereby selecting the ‘edit’ option you can manage and modify business activities in the applicant section, GCC activities and custom registration details.
By clicking on the ‘amendment’ option you can change the contact details, banking details, declarations, business relations and VAT application of the applicant. Note that you will have to inform the Federal Tax Authorities before bringing about any changes in your VAT through the software. Your modifications will only be updated when the FTA approves the proposed changes. If you forget or do not inform the authorities, you will be charged with fines as penalty charges.
Top VAT Advisors GCC
If you are new in the field of trade and commerce of UAE, you should likely see a VAT consultant or advisors from the Gulf Cooperation Council (GCC). This will not only help you to get an insight into the terms and clauses of the service but also you will get acquainted with the market dynamics. Thus, by consulting the VAT advisors you will be able to better implement your proposals and operations of your sales and services. Some of the well-known advisors or consultants whom you could seek guidance are M S Accounting and Tax Consultancy, KC International, Dubai VAT Consultants, AccountingBuzz, VAT Box, Gupta Accountants, GCC Filings etc.