As GCC have rolled out VAT law from 1st January, 5% value added tax (VAT) will be imposed on consumption of goods and services. In order to be in line with the new tax law, you need to be VAT ready and for that you need to go for a VAT ready hospitality solution.
Value Added Tax (VAT) – What is it?
As the name suggests, VAT is designed to tax only the value added by a business on top of the services and goods it can purchase from the market. In other words, it is an indirect tax levied on the consumption of goods and services.
Businesses and the registrants enrolled under the VAT law need to remit tax to the government while supplying goods and services.
What our VAT ready hospitality solutions offer?
Know how our VAT ready hospitality solutions will help you experience effortless operations:
Automates tax structure as per VAT requirement.
Calculates the correct VAT payables.
Generates VAT-compliant invoices.
Payment processing as per actual VAT rates.
Eliminates the human error for calculation.
How VAT will be levied?
VAT is a multi-stage tax which is levied at each step of production of goods and services which involves sale/purchase. Tax is levied in a supply chain at each stage and is collected by businesses on behalf of government, and will be incurred and paid by end consumer.
Businesses who can register for VAT:
| Annual Turnover Criteria | What you should do? |
|---|---|
| Annual turnover > AED 375,000 | Needs to register for VAT |
| Businesses with: taxable goods and services > AED 187,000 and < AED 375,000 | Optional to register for VAT |
The tax will be applied to items like food, water, clothes, electronics, electricity bill, gasoline, phones as well as hotel reservations; with possibilities of exemptions and zero rating for some supplies.
Try our VAT – ready solutions today!
Note: All the information given on this page is subject to the notifications passed by GCC.