Registration and Complying the Gazt(Government Authority of Zakat & Tax) – VALUE ADDED TAX (“VAT”) SYSTEM IN THE KINGDOM OF SAUDI ARABIA (“KSA”) is mandatory for all persons who are resident in the KSA and whose annual taxable turnover exceeds a certain threshold.
1. The Cloud Accounting Software, should have the features for VAT Implementation in Saudi Arabia. Must comply its rules, regulations, and guidelines.
2. Must understand the difference between Online Accounting Software and the Cloud hosted accounting software. Because cloud hosted Accounting Software is different from online Accounting Software.
3. Cloud computing accounting software is accounting software that is hosted on remote servers. It provides accounting capabilities to businesses in a fashion similar to the SaaS (Software as a Service) business model. Data is sent into “the cloud,” where it is processed and returned to the user. All application functions are performed off-site, not on the user’s desktop.
4. In cloud computing, users access software applications remotely through the Internet or other network via a cloud application service provider. Using cloud computing accounting software frees the b usiness from having to install and maintain software on individual desktop computers. It also allows employees in remote or branch offices to access the same data and the same version of the software.
5. The Gazt approved software’s are having statutory VAT reports builtin. It can auto generate VAT return reports. The Tax Returns report is a comprehensive summary of your VAT returns. This report contains a list of tax returns files which are generated for specific time periods.
6. These report are:
- Generate the tax returns file.
- Export/download the file.
- File your tax returns.
- Mark the tax returns as filed.
7. For example The Tax Returns report generated in Zoho Books follows the standards and specifications mentioned by the GAZT. Please make sure you have the local (Saudi Arabia) support any accounting software you are implimenting.
8. Accouts Arabia is the local partner for Zoho Books in Saudi Arabia. Please visit our partner website. The VAT Audit Report contains all the transactions that are carried out under VAT. It contains a list of GAZT audit files which are generated for specific time periods. The GAZT has mandated this report for audit purposes, i.e. to ensure that all the transactions pertaining to VAT are correctly recorded and calculated. The VAT Audit Report in Zoho Books follows the standards and specifications mentioned by the GAZT. You can Generate VAT Audit File.
9. The Other options are Sage Business Cloud Accounting Software. QuickBooks Online Accounting Software. Tally ERP Cloud Accounting Software. Tally ERP is Arabic/English bilingual accounting software and Gazt Approved.
10. One should follow the amendments and updates of the VAT Government changes. For example there was a change of VAT rate to 15% effective from July 1st 2020. So every tax payee should well educated of the VAT rate change rules and return how it effects.