VAT Accounting Software for UAE

Simple & Free VAT software for invoicing & accounting

Create VAT compliant bilingual invoices Log all your expenses & purchase bills Ready made VAT form for filing returns File VAT returns on your own without help


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All about UAE VAT?

What is VAT?

VAT stands for Value Added Tax. It is an indirect tax. It is applied on the sales of goods and services. Businesses selling their products and services collect taxes from the consumer/buyer and further remit the taxes to the government authorities. Also, VAT is one of the most popular indirect tax that is adopted by over 140 countries around the world, including New Zealand, Australia, Canada, Singapore, Malaysia and all 29 European Union (EU) members. TopNotepad is a VAT software and has a copy specifically designed for UAE market.

How does the VAT value chain work?

Value added tax, as the name suggests it is charged at each step of the supply chain. Here is a simple example to understand this new tax regime in a better way. Let’s say you purchased raw material for AED 1000 and paid a VAT @ 5% of AED 50. You further processed the raw material and sold your output for AED 3000 and also collected VAT @ 5% i.e., AED 150. Now, as a business when you remit VAT, you just need to pay AED 100 as you can claim the VAT you paid on your purchase which was AED 50. This is quite simple and to make it further simple use our UAE VAT accounting software. Please note, it can be tried for free.

Why is VAT being implement?

VAT is implemented to improve UAE government’s revenue and reduce UAE’s dependence on revenue earned from oil. This revenue boost will help the government continue to provide world class public services like hospitals, roads, public schools, parks, waste control, and security services as all these services are paid for from the government budgets.

When would VAT come into effect?

UAE is introducing VAT on 1 January 2018 at a standard rate of 5%. It has also issued a few draft VAT invoice formats and to manage the complexity of this new tax regime, we suggest use a VAT tax software. Currently, the businesses have adequate time to prepare before VAT is implemented, which will come into effect only January 2018. Until then learn more about various aspects related to VAT.

Who needs to register for VAT?

Please note, as per mof.gov.a portal, all business who have taxable supplies and imports in excess of the mandatory registration threshold of AED 375,000, must register for VAT Also, any business may choose to voluntarily register for VAT in case the supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500. VAT registered entities may consider using our VAT accounting software UAE edition after registering.

How to stay VAT compliant?

Businesses in UAE are expected to put all the possible efforts necessary to be VAT compliant. For the success of this new tax regime, businesses must ensure they fully comply with VAT by upgrading their technology and bookkeeping infrastructure and may also consider hiring a full-time staff that has knowledge of using VAT accounting software. If you are a small business, you may learn using some tool like TopNotepad that helps you manage your books and also generate all reports required for filing VAT returns, which you can file on your own.

Please suggest a VAT software that works best for UAE?

TopNotepad middle east edition is one of the best VAT software. It has multiple VAT invoice formats that can be used by variety of businesses. Many businesses in Dubai use this software to not just tally their books of accounts but also for tax compliance.

How to file VAT returns?

All business are required to file VAT returns with the FTA on regular basis. The return filing frequency could be quarterly or monthly depending on the decision of FTA, return filing is very simple and can be done online. You can get the summary of your VAT liability in a click if you are using our VAT accounting software.