Technology has become an intregal part of human life. Be it business or personal life, and technology has infused itself in every possible aspect. At a significantly fast pace, the technological invention has extended its arms and has held every possible business domain. Customized software is available in the market that has minimized the human effort to a great extent. Be it a banking service, or even a hospital, technology has left its footprint in all possible areas. Business professionals prefer to select an automated software to fetch the required results just by feeding data into the system. This guide will take you through the path that blends tech and VAT-which stands as a concern for the business professionals in the region of UAE.
The Scenario of VAT in the UAE
The concept of VAT has been altogether a new subject in the United Arab Emirates, which got implemented on 1st Jan 2018 at a rate of 5%. Stands as an indirect tax, the VAT has been accepted in more than 180 countries across the world. When it comes to the implementation of the law, it becomes a core task of the business entities to play the role of government custodians to collect the required taxes. Now, by holding custodianship, it becomes vital for the business entities to be accurate in their business records. It is recommended to use relevant software dedicated to VAT. By doing so, you will be able to fetch in the benefits mentioned below:
- Fast process
- Data redundancy disappears
- High-end accurate results
- There exist multiple sources of data
- Transparency of records
- Real-time report generation
Blend of VAT and Tech
Now, it is to be noted that when you blend tech with the core tasks carried out in your business entity, it gives birth to inter-dependency of departments. For example, to carry out error-free VAT records, it is essential that your accounting and bookkeeping records are adequately maintained. Additionally, you will be in a position to make the best utilization of your resources and time. By infusing technology with VAT, you will be able to derive the following:
- Proper alignment of data
- Quick generation of VAT returns
- Reconciliation of VAT Returns prepared
- Preparation of Group VAT becomes easy
Dealing with all these tasks manually turns out to be very tedious, which slow down the business process. On the other hand, the human-intervention with the business records does have the probability of errors. Any error available in the business books might turn out to be complicated during the external audit process, which is a mandatory requirement for every business entity. Earning a good audit score turns out to be vital for any business entity as it improves the goodwill in the eyes of internal and external business stakeholders, including the government.
The business entities have been continually adapting the technological changes in today’s business environment. Involving technology with the business operations is a must, and if you neglect or fail to do so, you ultimately threaten the existence of your firm in the market. When it comes to VAT negligence of error would finally reflect on the balance sheet, profit and loss statement of your company. As stated earlier, it would gradually ruin the reputation or goodwill that your business entity holds in the present market.
How to Proceed Ahead?
By now, you have got an overall picture regarding the implementation of technology to sort the VAT issues. Before you plan to implement the idea or even buy a VAT software, it is recommended to take the advice of experienced VAT professionals as they hold a better clarity regarding the software that can deal with your business.
JAXA Chartered Accountants, licensed and approved auditors in Dubai and other emirates of the UAE, have been helping numerous clients deal with their organizations' VAT, accounting and audit proceedings. Our business experts are well-versed with the VAT proceedings and can help you to understand the business proceedings in a better way. They hold industry-experience and hence can guide you better in selecting the right software for your business. In case any errors get highlighted, they can provide tailored solutions accordingly. To have a word with our experts, do contact us – we’d be glad to assist.