Small business owners are scrambling to get a grasp on VAT and its implementation due early next year. The government of UAE has announced VAT as a compulsory fiscal policy that will applicable to all businesses throughout the nation. For those wondering what VAT is, it can be defined as a form of tax which is applied on products or services each time value is added at a stage of production.

To cut the explanation short, VAT ends up upon the consumers’ shoulder. But businesses must know how to skillfully cope with VAT, how to compute precise VAT on each production stage for claiming purposes. Let me give you an example, a producer buys material for production purposes, the tax is levied by the supplier upon the material supplied. This cost is initially undertaken by the producer, but is then added to the cost of the product for consumers to pay. The process may seem rather simple, but comes with much complexity and accounting. Businesses must be ready to manage and maintain individual transactions occurring between suppliers, customers, vendors and other stakeholders.

Why Automate VAT Compliance Processes?

Why Automate VAT Compliance Processes

The next question arises, how can businesses manage this new VAT tax within their organization? Is it easy, is it simple? Unfortunately, no. The larger an organization, the more difficult it can be to determine VAT on products and services.

You would be surprised to learn that even in today’s modern times, where thousands of businesses are using sophisticated automation solutions, tax calculation is still being managed manually through traditional spreadsheet software and programs. Some ERPs come with in-built tax maintaining codes, but still require heavy manual input and are inflexible towards constantly changing compliance standards.

So, automation is definitely out there, helping businesses overcome tax computing difficulties. This is a fact that can’t be denied. Some of the many reasons why businesses have adapted to technology for tax determination include lower costs and consistency as manual tax compliance processes can be expensive due to hefty requirements for labor, accountants, paper and documentation.

Which automation solution offers tax compliance?

If you are looking for a business automation solution which can take care of all your tax compliance needs, opt for Value Creation Automation (VCA). This innovative technology has been in the making for years, only recently being introduced in the market as a one-in-all program that is bound to fit any business structure.

The solution has been designed to manage entire business functions with ease, reducing manual burden and costs simultaneously. But let’s not brag and get to the facts on why and how VCA tops the list.

First, it is necessary to understand that VCA follows a holistic approach, covering business frameworks from top-to-bottom and from left-to-right. So instead of specializing in the automation of a single process, the system takes care of every single process including finance, production and operations, delivery, customer relationship management and even marketing. All functions are integrated and connected to single server where data is easily transferable, accessible and stored contextually.

How Can VCA help you with VAT?

How Can VCA help you with VAT

Cost of VAT compliance can become overburdening. This process, if not managed well, can turn out to be an expense for your business. It sis crucially essential for any business owner to understand the implication of inaccurate tax computations and determination.

Value Creation Automation can be your savior. In today’s highly competitive industry, you can rely on this solution to oversee and manage entire tax processes without manual support.

To minimize costs, you must be efficient. And efficient to the point that you gain a competitive advantage and seize a larger market share. If you can’t, you are bound to dissolve, maybe not instantly, but in the long-run for sure. Let’s take a look at some of the features that of VCA that can help you manage VAT implementation and determination:

Record-importing capabilities

VAT can only be determined upon day-to-day transactions and invoices maintained by a company. Usually, such accounts are handled by a trained staff, which work to update accounting records for diverse purposes. This process is usually manual-based and can be costly as well as time-consuming.

VCA managed individual accounting books, ledgers and accounts in real-time, updating every transaction made within and externally in specified accounts. The result: accurate transaction records. This data can be tracked and used for tax compliance procedures at the click of a button.

Drill-down approach

VCA maintains individual records as well as group records of transactions. In other words, the system allows you to drill-down from broad product category level to single customer transaction level. Such ease of information access can help with recalculations for VAT return and adjustments.

Automated Analytics and Reporting

With VCA, you can adjust and customize VAT compliance settings

With VCA, you can adjust and customize VAT compliance settings. But this is just one of the most basic feature VCA offers. Using advanced Artificial Intelligence, VCA can re-adjust to changing VAT standards through automated tax research. This means, your system will ensure your business is meeting VAT regulations in real-time. You can screen through analytics and access reports at the tip of your finger.

Process Streamlining

Tax processes can be complex and may require the input of highly skilled tax personnel. This process often comes with audit errors which can take precious time to resolve. VCA takes away the need for hiring costly professionals for auditing purposes. The system not only streamlines all tax processes, but integrates them so your business remains compliant and up-to-date.

Tax rules inconsistencies can be detrimental to the success of any business in the long-run. Some challenges directly associated with tax implementations include material overpayments, system errors, staffing costs and even operational inefficiencies. Value Creation automation can minimize costs and expenses that incur through tax implementation and claiming processes. This can boost profitability, streamline operations and ensure your business steady scalability.

At the end of the day, you want to be sure your business is meeting all standards and regulations. VCA gives you the opportunity to manage VAT tax procedures at the click of a button. This technology provides a holistic approach to implement the best industry-practices that assist with tax computations and research.  With UAE’s economy preparing itself or new tax policies, it is time you give your business the right technology infrastructure to manage VAT implementation with ease.