Value Added Tax or VAT is not a new term for most of the people in the world, but the businesses in the UAE are going to be exposed to this tax from 1st of January 2018 for the very first time. This tax is indirectly implemented at all the stages of the business, whether it is related to production, distribution or sales. VAT is added incrementally on all the stages and is the most popular method of collecting consumption taxes in the world.

As it is a new concept in the United Arab Emirates, so the VAT rate is going to be 5% at the start. The government of the UAE has announced it already so the businesses are now planning to implement Value Added Tax on their businesses and more than 50% of the companies have prepared themselves for this upcoming tax. But there are many companies which do not know how to deal with it so for them, following steps of procedure must be followed to prepare the organizations for the upcoming changes:

  • The most important thing to learn is the VAT law implemented by the government of UAE.

  • It is also important to mention that you must see the provisions which are directly related to the industry of your interest.

  • The company should try to find out the transaction processes on which the company business runs.

  • The contracts of the organization with the parties which are engaged with you in the business must also be considered and necessary requirements should also be incorporated.

  • For the companies, the training of the employees is a must as they are going to implement the VAT law accordingly.

  • The management must consider the impacts of the VAT on the business.

  • The application should be submitted for VAT registration if you have reached at a particular solution.

  • The education of the customers is also the part of the steps for the implementation of value added tax in the business as it is going to affect the normal procedures of the business.

  • If there are issues in the implementation, try to resolve all immediately.
  • Derive a plan through which this new law is going to be implemented in the organization.

  • The software team must be engaged in the procedure as they are the actual people who are going to implement it.

  • The difference in the financial books should also be reconciled before the implementation.

  • Trial run is a must so that you will get to know the value added tax, which is going to be refunded or become the part of the refund.

Implication of VAT on businesses

Businesses will be responsible for carefully documenting their business income, costs and associated VAT charges.

Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods/services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.

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 Complaint Accounting Software In UAE

The ambit of VAT is not limited only to tax calculation; it is also expected to change the way that millions of enterprises in the UAE do business. Every taxable entity registered under VAT has to file returns online every month or quarter depending on the nature of their business. From a compliance perspective, businesses that work with automated software in any way will need to update their tools to incorporate the new VAT laws.

Besides managing your business finances, we help you capture your contacts’ VAT details, raise VAT compliant invoices, create business reports, and generate VAT returns

Here’s what you can look forward to:

A cloud platform that runs your entire business
Whether you’re using your phone or your computer, Sage Accounting software UAE lets you stay on top of your finances. It ensures that you and your collaborators are working on the same data, wherever you are, whenever you want.

A customised edition for the UAE
We have carefully crafted with the requirements of UAE businesses in mind. With the upcoming VAT regulations, businesses need to be perfect in every transaction they perform. With BTC Solutions of ERP Software, you can use VAT treatments to mark a customer as VAT registered, Not VAT registered, or Non-GCC customer. You can also select the VAT that applies to each goods or service, mark goods as excise or services as digital, and record the Place of Supply for every transaction.

Get paid the fastest way!
ERP Solutions are VAT Ready Software in UAE integrated with trusted payment gateways to help you accept online payments for your invoices. This further automates your cash flow and bookkeeping, ensuring fast and hassle-free payment collection. Just email your invoice, and when your client makes their payment, that information gets automatically updated in your bank records.

VAT Ready Accounting Software In Dubai offered by BTC are:





If you need more details about the upcoming VAT law which is going to be implemented in the UAE, there are numerous business financial consultants like BTC who can offer best solutions for all types of taxes and provide the best possible ERP solutions according to UAE laws and regulations.