With VAT implementation just around the corner, every business owner is scrambling to find the resources needed for this big change. Countries all over the world are implementing the Value-Added Tax (VAT) to generate income for the state.
VAT tax is basically a tax that is levied on the consumption of goods and services. Businesses are required to apply this tax throughout the production stage leading up to the end-consumer sale.
Businesses must register for the VAT and must be ready to meet obligations and compliance measures set out by the legislative or legal authority.
Now you must be wondering how will a tax such as VAT affect your business? With VAT tax, you will need to manage and calculate all your transactions and apply tax at various stages of production. In order words, your accounting and finance processes will become greater and more complicated.
Most companies would opt for a VAT tax expert who can manage all VAT-related transactions and claims management. But this is an expensive option and isn’t very reliable. With technology being used by so many businesses out there, it is rather difficult to manually retrieve data and calculate applicable VAT tax every step of the way. So, why not get a VAT Tax compliant software? – a software program which not only handles all accounting processes but also manages records for tax purposes.
VCA Finance and Accounting
Value Creation Automation, VCA is one of such automation solution which is designed to manage end-to-end accounting processes along with tax compliance. With advanced technology driving the platform, you can look forward to a range of highly specialized tax features, financial management tools and basic accounting tools.
The implementation of VAT is pushing many companies to seek automation solutions or find adjustments to their existing enterprise systems. But unfortunately, not all ERPs are offering integration of modifications.
One key aspect to remember here is that VAT is an ongoing compliance phase and should be implemented into a system for ongoing computation.
VCA Finance is a complete financial platform which oversees entire VAT transactions in real-time. All such transactions are integrated with the accounting system to ensure smooth collaboration and streamline flow of information. Manually working on VAT computations with hundreds of transactions occurring on a day-to-day basis is next to impossible.
Prepare VAT Refunds and Returns
VAT tax is slightly complex as it is levied on all stages on production. Manufacturers and suppliers can claim VAT tax, or money spent on the acquisition of raw material and other resources needed for production. Manually, calculating each and every account won’t be a possibility, but VCA Finance, all is taken care of. The system automatically identifies, computes and creates VAT tax reports for refunding and claiming purposes. Since all of this is happening in real-time, the risk of delay is eliminated. Another point to remember is that VAT claims must be submitted at regular intervals.
Another important feature of VCA Finance is the integrated accounting workflow. All accounting processes within the business are seamlessly connected with the VAT system. This enables real-time monitoring and tax computing for faster report generation. Businesses do not have to worry about importing or exporting data manually for the creation of tax reports.
Automated VAT invoice and billing
To claim VAT tax, it is necessary to create tax invoices throughout the supplier and production stage. Manually, this task would be a hassle. But with VCA finance, all VAT invoices are generated by the system in a timely manner to prevent any delay.
Most VAT tax claims are to be submitted online to the relevant tax authority on the stated dates. VCA Finance will automatically generate reports and send claims to the relevant authority in a timely manner. This unique feature is great for businesses which are dealing with large volumes of work and extensive accounting procedures.
But before any of the above features can be made use of, businesses must undertake VAT mapping, a process through which business stages and transactions are identified throughout the workflow. It is necessary to determine which process is applicable for tax.
VCA Finance is designed to give businesses the power of taxation so that compliance becomes automated and hassle free. All VAT rules are applied to determined taxing points in a continuous manner.
With automated platforms such as VCA, your business can save time as well as money when it comes to VAT tax applications. In the long run, such a solution can help you better manage your cashflows and increase productivity.