Accounting for VAT
How to choose VAT accounting software

How to choose VAT accounting software

BY FirstBit | Published 24 May 2018 | Updated 10 August 2022
REVIEWED BY FirstBit
2256

It appears rather complicated to choose a software solution for VAT accounting. We have prepared a brief checklist. Please choose statements that are true for your business and learn which software product features are important for you.

For you:

Feature

Sales

Your customers are in the UAE.

· Tax Invoice issuing and accounting when selling.

· Tax Invoice issuing and accounting when receiving prepayments.

· Sales accounting at the rate of 5 % with a breakdown by emirates.

· Accounting of customer prepayments at the rate of 5 % with a breakdown by emirates.

· Customer return processing.

· Automatic fill of Box1(a-g) in VAT Return.

Your customers are outside the UAE.

· Sales accounting at the rate of 0 %.

· Accounting of customer prepayments at the rate of 0%.

· Customer return processing.

· Automatic fill of Box4 in VAT Return.

You have customer contracts in currencies other than AED.

· Storing currency rates in the system.

· Conversion of sales values, prepayments, returns, and VAT amounts from the currency of contract into AED at the right rate (delivery date exchange rate, prepayment date exchange rate).

Purchase

Your suppliers are in UAE.

· Tax Invoice accounting when purchasing.

· Tax Invoice accounting when making prepayments.

· Purchases accounting at the rate of 5%.

· Accounting of prepayments to vendors at the rate of 5%.

· Return to supplier processing.

· Automatic fill of Box9 in VAT Return.

Your vendors are outside the UAE, you purchase goods.

· Accounting of imported goods purchases.

· Accounting of customs declarations.

· Import VAT assessment in case of customs clearance of goods: - self-assessment; - by customs broker; - by postal service.

· Import VAT calculation on the basis of full customs value including insurance, freight and any customs duties.

· Automatic fill of Box6, Box10 in VAT Return.

Your vendors are outside the UAE, you purchase services.

· Accounting of imported services purchases.

· Imported services VAT assessment.

· Prepaid imported services VAT assessment.

· Automatic fill of Box3, Box10 in VAT Return.

You have vendor contracts in currency other than AED.

· Storing currency rates in the system.

· Conversion of purchases values, prepayments, returns, and VAT amounts from the currency of contract into AED at the right rate (delivery date exchange rate, prepayment date exchange rate).

For all:

· Automatic fill of VAT Return.

· Detailed reports for VAT Return filing check.

· Accounting maintenance of all operations including: - wages; - fixed assets; - inventory.

· Generation of basic financial reports: - Statement of Financial Position (Balance Sheet); - Profit and Loss Statement.



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