featured benefits

Benefits of Tally ERP9 Software

Tally is one of the software which is used worldwide. It is used by individuals as well as businesses to maintain their accounts. Tally is considered as the most capable software in handling all kind of businesses.

Tally can help businesses to seamlessly combine their activities for accounting, inventory, compliance, payroll, finance, and more. Business owners can manage multiple functions with multiple user logins. They can assign different access rights to their employees based on the data that use to run the business.

Advantages of Tally ERP9 Software

  • Reliability of Information: The tally software protects your data and data stored in it is unlikely to get lost in any way. The tally software never disappoints even when the machine gets closed down suddenly due to power failure, the data will automatically get saved.
  • Ease of Data Movement: The data which is entered in tally can be updated throughout the system and can be accessed from any place. Hence, no need to move physical files all over the workplace.
  • Elimination of Human Error: The tally software provides you with shortcuts that help in avoiding errors while making an entry. The tally software has a brain of its own, as it predicts the further process and suggests strategies to develop business.
  • Continuous Processing: A successful business needs to introduce new software and hardware for smooth operations. Also, businesses need to be ever running, therefore, a pause can alter the progress of the organization. The installation of Tally.ERP9 is easy and you can start making transactions as soon as you get it set up. No need to halt your operations to make successful use of Tally software. The amazing software gives the flexibility to create various types of vouchers all the time.
  • Assurance of Information: There is not even the slightest scope of data tempering after the data being put away in the software. Information Uprightness assessments ensure that no external changes to the data can intervene with Tally.ERP9. The complex binary coding helps avoid any such discrepancies that can alter any type of data. The functionality of Tally.ERP9 may sound complex to you but, once you start your Tally course, the complexity will soon diminish and you will find this software much useful set codes.
  • Tally Makes Business Easy: Tally software helps you to assess the day-to-day transactions of your business to make the right decisions easily.

Looking at all these benefits of Tally software we can conclude that tally is an amazing software that contributes to the growth of businesses on a very core level.

By AWX TEAM 0 Comments
Vat introduction

Introduction to VAT in UAE

With each passing day, we are moving one action better to the execution of VAT in UAE. The VAT in UAE is a basic consumption tax that will be imposed on most of the deals of products and services unless specifically exempted by the Law. Under this, VAT is charged at every stage of ‘Value Addition’ in the supply chain and the mechanism of Input tax reduction ensures that the businesses serve as tax agents or tax collectors of the government, who collect the tax from completion consumers, account and pay the tax. Eventually, completion customer pays the tax.

The federal government authorities are working in full speed to implement VAT in UAE and following are the crucial milestones attained in the process of carrying out UAE VAT Law:

1. Draft UAE VAT Law was offered in MOF
2. Federal Law on tax treatments was released
3. VAT Decree-Law was released
4. Online VAT Registration is opened in FTA portal
Completion of UAE executive guideline will be the next huge job in the process of implementing in UAE

VAT Application in UAE

The VAT is expected to be introduced across the UAE on 1st January 2018. The Kingdom of Saudi Arabia and UAE will be the very first 2 member countries of GCC to execute BARREL. The other member nations such as Bahrain, Oman, Qatar, and Kuwait are expected to carry out BARREL in the middle of 2018 or the beginning of 2019.

A standard rate of 5% will be imposed on the supply of items and services in the UAE. However, there are certain materials such as local guest transport, specified monetary services, healthcare, exports outside GCC and so on, which will be either zero-rated or excused from VAT in UAE.

Just when ‘Executive Regulations’ for VAT are released, clearness on the conditions and controls for excusing the materials pointed out in UAE VAT law will be readily available.

Company Readiness for Value Included Tax in UAE

First January 2018, is the anticipated date for VAT Application in UAE. The time available, just about 2 months from now, is important for companies to prepare themselves towards the new tax system and be ‘VAT Ready’. Being ‘VAT Ready’ does not suggest your preparedness as on 1st January 2018, it symbolizes today’s preparedness for VAT.

First of all, is about ensuring that all the financial transactions are taped and books of accounts are precise and up to date. This is because, the books of accounts will function as evidence for minimum yearly turnover threshold limit for registration and on this basis, either you will be mandated to register or you can request for exemption from registration.

Second of all, being ‘VAT Ready’ ways, you have to charge VAT on the supply of taxable items and services, account the VAT paid on the purchases such that Input tax deduction can be declared and lastly, you need to file online VAT returns regularly, revealing the information of  VAT charged and paid.

For that reason, the very first instant step toward VAT preparedness will be to explore the very best VAT Software which will not just help you to be VAT certified tomorrow – when VAT is carried out in the nation but will likewise assist you transit perfectly into the brand-new VAT age.

Apart from checking out the best VAT Software, it is crucial for organizations to understand the basics of  VAT and the business ramifications. We visualize that organizations may need to make modifications to their company operations, monetary management, book-keeping and so on, to fully abide by the VAT requirements.

The following are a couple of crucial tasks for your VAT readiness:

1. Check out finest VAT Software – Adapt and Line up with your company activities

2. Build the organizational competency by informing your groups on the fundamentals of VAT and its effect on your service

3. Evaluation your service procedures, practices, and treatments – generally rates, procurement, invoicing, logistics and so on in line with VAT requirements and line up accordingly

4. Ensure books of accounts are accurate and update date

5. Notify your vendors and customers about VAT and subsequent influence on deals

6. Preparation & Transitioning to VAT

By AWX TEAM 0 Comments
vat return

Get ready to file VAT Return with your Tally.ERP 9 in GCC

The UAE and KSA are the two countries that rolled out VAT in the GCC on January 1, 2018. Whether you are in the UAE or KSA, as a business owner you need to ensure that your business practices are tax compliant and you are able to generate VAT return correctly before filing.

How to file accurate VAT Returns in UAE and KSA?

Generate and file Accurate VAT return confidently with Tally.ERP 9

Tax Computation and Analysis

Before you file your VAT return, won’t it be great to get a complete picture of all business transactions and taxes? With Tally.ERP 9 you can do even more.

The VAT tax computation and analysis report show transactions that have been included or excluded in the return, the total amount of tax to be paid, and refundable amount if paid in excess. You can drill down further from each of these groups to find out why.

Being able to get a complete picture and understanding of your VAT return before filing is a powerful value addition to your business.

Automatic detection of errors

Apart from helping you understand your VAT return to the last level of detail, Tally.ERP 9 identifies tax mismatches, wrong TRNs (UAE), wrong TINs (KSA) or any other missing tax components. Tally.ERP 9 ensures that your VAT return is error-free.

Generate your VAT return as per GCC VAT guidelines

If you are in the UAE, Tally.ERP 9 lets you generate your VAT return in PDF format and use it as a reference while filling in details in the FTA e-Services portal for filing return.

If you are in the KSA, Tally.ERP 9 will generate your VAT return in MS Word format. You can use the document as a reference while filling in details in the GAZT e-portal for filing the return.

Save VAT return in your system

Once you have filed your VAT return, you can save a copy of the return on your computer. Tally.ERP 9 keeps track of changes that are made on the saved return period. You can either reject these changes, accept them and file a revised VAT return.

Declare reverse charges in a VAT return correctly

In Release 6.4, you can mark transactions with reverse charge applicability, and transactions for which you have paid VAT at customs. This way you can keep a track of your reverse charges and Input Tax Credit. This will further help you to report Input VAT as well as output VAT in your quarterly VAT return.

With Tally.ERP 9, you can be ready for filing VAT return anytime. It helps you to keep your books updated at all times and you can generate VAT tax computation and analysis report anytime. Tally.ERP 9 lets you focus on business growth while managing all the complexities of VAT compliance in the background.

By AWX TEAM 0 Comments
Capital Asset Scheme in UAE VAT

Capital Asset Scheme in UAE VAT

Capital Asset is the business properties which are designated for long-term usage. These are not meant up for sale in the regular course of business’s operation but are used or consumed in the business. As an example, if a company purchases a computer system to utilize in its office, the computer system is the possession of a resource, yet if one more business purchases the very same computer system to sell, it is thought about inventory.

In UAE VAT, the input VAT paid on procurement of resources properties is permitted to be recuperated. However, in UAE VAT, a unique scheme referred to as ‘Resources Property System’ is developed to control the input VAT recuperation on the bigger worth of resources assets having lasting usage.

Under Capital Properties Scheme, the at first recuperated Input VAT on resources properties is changed based on real usage during a specified time. In other words, you will certainly be enabled to recover the complete input VAT on funding properties in the initial year, if it is planned to be used for making taxed supplies throughout the specified duration, let’s claim one decade. During the valuable life of one decade, if the capital properties are made use of for the non-business objective or for making exempt supplies, the taxpayer needs to reverse the in proportion input VAT for non-taxable use. The reversed input VAT ought to be reported as an adjustment towards funding possessions while submitting VAT returns for that year.

The objective of capital possession scheme is to reflect making use of the property- whether it is for taxable or excluded functions over its beneficial life. In specific situations, the designated use the possession may transform over the time and input VAT recuperation based on intended initial usage might not rather reflect its usage over time.

Not all capital properties are considered under the Resources Properties Plan. The UAE Exec Guideline provides quality on resources assets which require to be considered under this system.

Allow us to recognize what type of assets are considered under the Resources Asset System.

Capital Assets Considered under Capital Assets scheme.

A Capital Asset is a solitary product of expense of the business totaling up to AED 5,000,000 or even more leaving out Tax, on which VAT is payable and also has actually estimated useful life equal to or longer than 5 or ten years.

1. 10 years in case of a structure or a part thereof
2. 5 years for all Resources Assets besides structures or components thereof
Aside from the capital possessions, if the business sustains an expenditure consisting of smaller sums which collectively amount to AED 5,000,000 or even more, it will be treated as a solitary product of expenditure of AED 5,000,000 or even more. This will certainly apply just when sums are staged payments for any one of the following:

1. For the acquisition of a structure
2. For the building and construction of a building.
3. The amount incurred remains in relation to an expansion, refurbishment, renewal, fitting out, or other work undertaken to a building, except where there is an unique break in between any such work being embarked on, in which situation they will certainly be considered to be different products of expense.
4. For the acquisition, building, assembly or installment of any type of goods or immovable residential property where components are supplied independently for assembly.

Conclusion

Just those assets which qualify the above problems will certainly be thought about under Resources Possessions System and also input VAT recovery will be managed by this system. For various other capital assets, which do not certify, input VAT healing will be identified according to the regular input VAT recovery provisions of the regulation. To understand the conditions for input VAT recuperation, please read Input Tax Healing under VAT in UAE.

The UAE VAT Executive Laws likewise gives the quality on just how to determine the input VAT change when the intended use the resources property is altered. To recognize the computations, please review Input VAT Adjustments under Resources Assets Scheme.

By AWX TEAM 0 Comments
Tally customization

Is the Input VAT paid prior to Registration, claimable?

In UAE, obligatory VAT registration is needed just for those companies whose value of products exceeds AED 375,000 in the previous 12 months or prepared for to surpass in the next thirty days during the current financial year. For organizations with the value of Products/ Taxable Costs exceeding AED 187,500 in previous 12 Months or prepared for to surpass in the next thirty days throughout the present fiscal year, the VAT registration is optional.

All those organizations whose worth of products are less than the specified threshold limitation will not be allowed to register under UAE VAT. However, this does not stop or limit them to obtain VAT registration in the future, when the value of supplies surpasses or is anticipated to go beyond the specified VAT registration limit. This ultimately causes a service circumstance, in which, companies were not registered on the 1st January 2018, the date on which VAT was carried out however over the time period, they have surpassed the specified limit and have actually been signed up under UAE VAT.

If you take a close take a look at the above circumstance, there are 2 stages to the journey of the businesses, Pre-Registration, and Post-registration. In the pre-VAT registration stage, they needed to pay VAT on their purchase/expenses, however, were unable to recover Input VAT. This is due to the fact that only the registered service is enabled to recover the input VAT. In the post-registration stage, they are needed to collect 5% VAT on taxable supplies and also, they are allowed to recover the Input VAT paid on purchases/expenses.

While the above conversation looks clear, the confusion has to do with recovering the Input VAT paid before registration? Are companies allowed to recuperate the VAT paid prior to VAT registration?

Yes, the UAE VAT laws allow the healing of input tax paid on items, services, and imported products prior to the date of  VAT registration. This will be permitted, only if the goods and services were used to make products that give the right to input tax healing upon tax registration. This implies that the purchases/expenses on which VAT was paid before registration were used in making taxable products after registration.

The recovery of Input VAT will remain in accordance with the general provisions of input TAX recovery and more importantly, the healing should be carried out in the VAT Return sent for the very first Tax Period following Tax Registration.

Nevertheless, the UAE VAT also stipulates certain exceptional scenarios in which VAT paid prior to registration can not be recuperated. The following are the circumstances:

1. Product and Solutions acquired for the function of making non-taxable Supplies. This indicates that you can recover the VAT, only if it is utilized for making taxable supplies including zero-rated supplies.

2. Input Tax related to the part of the Capital Assets that depreciated before the date of Tax Registration. This indicates that If part of the property is diminished then Input tax can not be recuperated on such possessions to the degree such properties are diminished. For instance, if you acquire a fixed possession with an anticipated life of ten years and when you register for VAT the possession has only 3 years of use left. In this case, you can recover just 30% of the VAT you originally paid.

3. Input VAT on service received more than 5 years prior to the date of tax registration will not be enabled to be reclaimed. This restriction is applicable just for services and not applicable for goods.

4. If such products were moved to another GCC country before tax registration.
Except for the instances listed above, in all other cases, you will be qualified to recover VAT paid before registration, if it is used for making the taxable supply.

Conclusion

Enabling business to recuperate the VAT paid prior to registration prevents cascading of taxes on the end customers. The businesses registered after 1st January 2018, must understand the benefit offered by this arrangement in recovering the Input VAT. Any absence in knowing this arrangement of law will lead to loss of Input VAT healing. Also, it is important for companies to note that reclaiming of VAT paid prior to registration is allowed only while filing VAT returns for the first return period post-registration. Thus, organizations should make sure to submit a return for the very first tax period after thoroughly analyzing the arrangements gone over above. After, the filing of return of the very first tax duration, recovery of input tax paid before tax registration can not be made.

By AWX TEAM 0 Comments
Posts pagination
Send a Message
WhatsApp WhatsApp us