UAE was always remained as tax free zone due to fewer tax components applied on commodity trading activities. But a big paradigm shift being seen in the Middle East about implementing taxes especially VAT. Come 2018, it’s all set to roll.
Types of taxes
There are various methods of tax collection practiced in different countries such as Income Tax, Property Tax, Sales Tax, and Value Added Tax etc… UAE and other members of GCC are all set to implement VAT on selected group of commodities. A slight increment in the overall pricing could be noticed.
Value Added Tax – Modus Operandi
VAT is collected on every transaction happening in between a business and its customer. As the name indicates it’s calculated upon the price of the goods. The respective governments would set the percentage of tax need to be collected depending on various product groups. Taxing will not be applicable on selected group of essential commodities normally related to healthcare and education. All the six nations of the Gulf Co-operation Council has agreed up on about implementing VAT from January 2018. To start with it has been decided to go with five percent flat rate.
FactsERP is all set to embrace VAT
Being an indigenous software application built for GCC, FactsERP didn’t need to promote any tax related modules, till now. But as a global solution provider who always being up-to-date with the rules and regulations, Facts Computer Software House proudly announces its new version of FactsERP with VAT enabled modules. Being front runner in creating ever adaptable solutions, FACTS provide upgrade for the existing FactsERP customers to easily re-align their operations without much headache. So why to wait? Be with FactsERP to be aligned with the changing environments!