VAT drives 20,000 UAE firms into digital accounting
Since the launch of value-added tax (VAT), more than 20,000 small businesses in the UAE have shifted from manual to digital accounting following the mandate issued by UAE government to submit tax returns online, said a top official.
Digital accounting has become imperative for countries worldwide. It not only facilitates operational and cost efficiencies, but also ensures better security, speed and reduced errors. Making VAT digital makes way for a modern and fast service which help businesses get their compliance right, reduces the tax gap, as well as plummets the cost, uncertainty and worry that businesses face while filing returns,” said Vikas Panchal, business head at Tally Solutions in the Middle East.
The UAE recently implemented value-added tax (VAT) beginning January 1, 2018. Tally Solutions – a leading international accounting and compliance software provider help businesses comply with the new law by creating awareness on the importance of maintaining proper accounting records as well as facilitating the ease of filing returns through its automated software Tally.ERP 9 Release 6.4. Trusted by more than 1.2 million businesses globally, Tally Solutions already includes a list of 50,000 satisfied clients across GCC, a company statement said.
“Ever since VAT was introduced in the UAE, companies have moved from pen and paper and scaled up their computing processes to be able to match up to UAE’s digital processes. Digitalisation has helped businesses to manage timely and accurate record-keeping, whilst preventing errors associated with manual processes. While digital accounting facilitates regulation it also allows businesses to access tax information in a single place, file returns online from any place and deliver improvements in business process,” added Panchal.
While automated accounting will have a significant impact on the way authorities collect, administer and enforce tax, it also helps resolve issues faster, making the tax system more sophisticated than ever before.