If you’re a business owner, you may be eager to align your business with VAT, but you might be unsure where to start. In such situations, VAT-compliant software like Tally UAE or advanced or best ERP software in UAE can provide valuable assistance. You may also have these questions in mind:
How can your business practices comply with VAT regulations? How can you effectively manage both VAT and regular business activities and guarantee the accurate filing of my VAT return? Also, how can you prepare for potential audits at any time?
In January 2018, a 5% VAT was introduced in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), as mandated by the Gulf Cooperative Council (GCC). The critical question is, where do you begin? You can start by recording transactions and generating invoices in a manner that complies with VAT regulations.
Here’s why you should consider using Tally UAE:
Tally Software UAE is dependable and fully equipped for VAT, backed by 30 years of experience in developing VAT-compliant software for different tax systems. In Saudi Arabia, the General Authority of Zakat & Tax (GAZT) officially recognizes Tally UAE. It also adheres to VAT guidelines set by the Federal Tax Authority (FTA) of the UAE.
For businesses in the UAE, Tally Prime allows you to generate your VAT return in XML or MS Excel format and a VAT Audit file in ASCII format, as per FTA requirements. The return is generated by breaking down taxable sales transactions by Emirate, in line with FTA regulations.
Simply start with recording transactions
Starting to record VAT-compliant transactions and invoices is a straightforward process with Tally accounting software. If you’re considering automating your business operations, Tally UAE simplifies the process significantly. Within minutes of installation, you can begin recording transactions and generating invoices.
Tally UAE allows you to create invoices with single items, multiple items, various tax types, and even multiple currencies. Invoices with multiple currencies can include detailed transaction value breakdowns for each currency used. VAT calculations are based on the base currency, which is typically the currency of your country.
If you are transitioning your business data from another software to VAT-compliant Tally Prime, you will only need to purchase an add-on.
Print invoices in multiple languages
Another notable feature of Tally UAE is its ability to print tax invoices in Arabic, English, or both, in accordance with the guidelines set by GAZT and FTA.
Detecting errors and preventing them become easy
Tally Prime’s error detection and prevention capability is unique. It automatically identifies errors, provides explanations for the errors, and allows you to make corrections. For example, it will issue alerts for errors such as tax discrepancies, missing tax components, incorrect TRN numbers, and more. This feature ensures the accuracy, timeliness, and VAT compliance of your business data.
Efficiently Manage Various Types of Transactions
Tally accounting software is versatile and can handle various VAT transactions. It certainly caters to traders, retailers, exporters, importers, and wholesalers. This software also serves businesses that encounter diverse scenarios daily. These scenarios encompass discounts, freight charges, self-accounting for reverse charges, input tax credits, and advance receipts.
Tally UAE offers the flexibility to configure VAT to suit your specific business needs. For instance, you can define taxes at various levels, such as stock items, ledgers, or groups, based on the nature of your business. When acquiring capital goods, Tally Prime empowers you to decide the extent of input tax credit to claim. If, in the future, you use these capital goods for producing exempted goods, you can reverse the input tax credit and make necessary adjustments.
Comprehensive Reporting Before VAT Return Generation
Before you generate your VAT return using Tally Prime or Elate accounting software, you have the option to review detailed reports. These reports provide a clear understanding of tax calculations and analysis. You can access this information in the Tax Calculation report. This report provides a comprehensive overview of all transactions, the total tax amount payable, and any refundable amounts. It categorizes transactions in the VAT return, showing what’s included and excluded. This allows you to investigate exclusions and understand tax calculation methods. The tax calculation considers price changes, sales returns, escalations, de-escalations, advance receipts, reverse charges, and other adjustments.
You have the option to save and maintain a digital copy of the VAT return. If you make changes to your master data or transactions, Tally Prime allows you to track these changes down to the finest details. Furthermore, the software provides the flexibility to recalculate the VAT return. You can either override the previous copy or create a new revised copy as needed.
Reverse Charge and Advance Receipt Handling
Tally UAE simplifies the process of managing reverse charge transactions. It does this by automatically populating them in the Reverse Charges report. This report provides a list of transactions. Some of these transactions have their liability already recorded, while others still need liability booking. You can conveniently pass Journal Vouchers for booking liabilities from within the same screen.
To track advance receipts, use the Advance Receipt report. This report helps identify advances for which tax liability has already been established. It also highlights those for which you need to create liability for a specific period. Tally Prime streamlines the process of booking liabilities directly from this report. You can complete this task with a single Journal Voucher for all advances with just one click. If your business operates in the UAE, this can be executed in an Emirate-wise manner.
VAT-Compliant Accounting Software
Quick and Easy Setup
If the concept of “VAT compliance” seems daunting, spend a few minutes with Tally.ERP 9 will dispel that concern. Installation is a swift process that takes only a few seconds. The software, which is under 90 MB in size, can be downloaded from the Tally website, allowing you to test it before making a purchase.
Tejas Goenka, the Executive Director at Tally Solutions, emphasizes that their software is built on the foundation of simplicity, accuracy, security, and adaptability. It caters to complex tax structures like GST in India and new tax regimes like VAT in the UAE.
Starting is easy. Input your Company Name, the Emirate, TIN (or TRN for Saudi Arabia), VAT registration date, and VAT return frequency (monthly or quarterly). After this setup, you can start entering transactions. Tally handles the rest, mapping data to VAT rules in the background.
After the effortless one-time setup, your business is fully equipped to record transactions in compliance with VAT regulations. Tally.ERP 9 has you covered whether you want to create simple invoices with customer names, stock items, quantities, and rates. It also handles more complex invoices with multiple items and tax types. It caters to businesses across various sectors, including white goods trading, retail, exporting, importing, and wholesaling.
Adaptable to Your Business Needs
Tally.ERP 9 software is flexible and accommodates a wide array of business scenarios. This includes handling discounts, freight charges, self-accounting for reverse charges, input tax credits, and advance receipts. You have the freedom to define taxes at various levels, such as stock items, ledgers, or groups.
For example, if you’re buying capital goods, Tally.ERP 9 lets you choose the input tax credit you want. If you later use these goods for exempted items, the software helps reverse the input tax credit (ITC) and make needed adjustments.
Additional Offerings other than ERP Software and accounting software from Peniel Computer
In addition to accounting and inventory management, Peniel Computer offers Tally.ERP 9 customization to cater to manufacturing, job work, payroll management, sales management, and more. These functions become essential as your business grows.
Above all, Peniel Computer provides an extensive online knowledge base in the form of TallyHelp and offers a dedicated team for on-site and offline support available 24/7 in the UAE to address your needs.