VAT compliant ERP software in Dubai
NOVEMBER 05, 2017 Category: Accounting & ERP Software
ALPHAEBM ERP is all set to embrace a VAT.
Alpha Byte Computers as a global SaaS solution provider, we always being up-to-date with the rules and regulations. For GCC countries Alpha Byte provides a new version for the customers to easily upgrade with the current ERP system without much headache. Our new VAT compliant ERP software is released now with a lot more new features and a new look and design. For new features contact our support team.
What is VAT?
Value-added tax is a consumption tax imposed on a product at each stage of production, before the final sale. Take, for instance, a computer manufacturer; the company is taxed on all the supplies it purchased to make and produce the computer before it reaches the shelf. Then, the customer pays the VAT as a percentage of the total price. (the tax the company had been liable for during the production process). The VAT is not usually an extra or add-on to the sale price. In the UAE, the tax will be calculated as a percentage of the retail sale price of a product.
The VAT is on the consumption or use of goods and services levied at the point of sale. The VAT is a form of indirect tax and is used in more than 180 countries around the world. While it feels exactly the same as a general sales tax to end-consumers; VAT is a more sophisticated tax and overcomes many challenges that affect the general sales tax. The VAT is charged at each step of the ‘supply chain’. End consumers generally bear the VAT cost while registered businesses collect and account for the tax. In a way acting as a tax collector on behalf of the Federal Tax Authority.
Registering for VAT
Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT.
Who will be taxed?
Businesses that provide taxable goods or services with annual revenue of more than Dh 375,000 will be required to register for VAT.
In conclusion, we understand your needs and help in streamlining them with your business operations. Furthermore, support to overcome those challenges while driving innovation.