Business in GCC countries will undergo a transformation when value added tax is introduced in GCC for the first time from January 2018. Hence, SMEs operating in low-tax business environment should make sure their VAT compliance for their ERPs. There are a lot of positive advantages for business if they follow VAT using the most advanced VAT ERP software GCC introduced by GCC VAT PRO.
Reasons for the Introduction of VAT
Economy of GCC countries is centered on the export of crude oil. At the same time, there is a huge drop of crude of prices coupled with high competition has reduced the revenues from this source of income. Hence, GCC countries are forced to look for other sources of income and stay at the top as the strong economic power in the region. VAT is recognized as a high source of income for the government and as it is new system of tax. There are a lot of initial doubts and need sufficient clarifications.
What is VAT?
Value Added Tax is paid by the end consumer for the goods and services they buy. It is set as 5% in GCC countries. While some counties charge 20% of VAT, five percent is very low. Some products are exempted from VAT and certain exported items can be filed for tax refund. In order to efficiently deal with VAT at every stage of production and supply for goods and services, they need to compliant their system with VAT ERP software GCC.
How to Compliant my Business with VAT?
It is not too late to complaint your business with VAT. Subscribe VAT ERP software GCC at a low price and compliant your business with new and sophisticated system of tax.