ALPHAMAX ERP is all set to embrace VAT
Alpha Byte as a global solution provider, we always being up-to-date with the rules and regulations. For GCC countries Alpha Byte provide a new version for the customers to easily upgrade with the current ERP without much headache. Our new VAT Software is released now with a lot more new features and a new look and design. For new features contact our sales team.
What is VAT ?
Value-added tax is a consumption tax imposed on a product at each stage of production, before the final sale. Take, for instance a computer manufacturer: the company is taxed on all the supplies it purchased to make and produce the computer before it reaches the shelf. Then you, the customer pays the VAT (the tax the company had been liable for during the production process) as a percentage of the total price. VAT is not usually an extra or add-on to the sale price. In the UAE, the tax will be calculated as a percentage of the retail sale price of a product.
Value-Added Tax or VAT is a tax on the consumption or use of goods and services levied at the point of sale. VAT is a form of indirect tax and is used in more than 180 countries around the world. While it feels exactly the same as a general sales tax to end-consumers, VAT is a more sophisticated tax and overcomes many challenges that affect the general sales tax. VAT is charged at each step of the ‘supply chain’. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority.
Registering for VAT
Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT.
Who will be taxed?
Businesses which provide taxable goods or services with annual revenue of more than Dh375,000 will be required to register for VAT.
More on the following link.