Here is how you can stay VAT compliant
In today’s highly regulated world, compliance is key to success. Value Added Tax (VAT) is an indirect tax regime introduced by many countries in the last few decades and businesses operating in these countries are expected to be VAT compliant. Almost all countries in European including United Kingdom (UK) and a few countries in middle east like Saudi Arabi and UAE have VAT in place.
So, to comply to the VAT law seamlessly here is a simple VAT compliance software that lets you track the VAT collected on all invoices, the VAT paid on all purchases/expenses and ultimately the VAT liability, which is difference of the two.
The first step towards VAT compliance is to track the net VAT liability precisely. Now, the methodology to calculate net VAT payable is simple, you have to sum the total tax you collected on your sales and the total tax you paid on your expenses and purchases. While it appears to be very simple but when you actually start maintaining the record of all transaction manually it could be overwhelming and might not be sustainable in a longer run. The best alternative to maintaining records and calculating manually, which could be prone to errors, is to leverage a VAT calculation software that precisely calculates the tax liability and generates key reports required for VAT compliance.
Please make sure you always follows these do’s for smooth audit of VAT compliance:
So, to comply to the VAT law seamlessly here is a simple VAT compliance software that lets you track the VAT collected on all invoices, the VAT paid on all purchases/expenses and ultimately the VAT liability, which is difference of the two.
The first step towards VAT compliance is to track the net VAT liability precisely. Now, the methodology to calculate net VAT payable is simple, you have to sum the total tax you collected on your sales and the total tax you paid on your expenses and purchases. While it appears to be very simple but when you actually start maintaining the record of all transaction manually it could be overwhelming and might not be sustainable in a longer run. The best alternative to maintaining records and calculating manually, which could be prone to errors, is to leverage a VAT calculation software that precisely calculates the tax liability and generates key reports required for VAT compliance.
Please make sure you always follows these do’s for smooth audit of VAT compliance: