KSA VAT Enabled ERP from iWesabe
KSA Vat enabled ERP
The Ministry of Finance has announced that VAT is likely to be introduced in KSA from January 1, 2018. There are only a few VAT ERP software in Saudi Arabia Many business owners have constant doubts and concerns about how this will affect them in terms of cost of operations in their businesses.
it is new to the residents of the country, there will be many questions
that need to be clarified, and such queries are answered by attending
several seminars and public events related to VAT conducted by various
industry specialists and officials. In this blog, we will be explaining
what VAT is, what the difference of a VAT Enabled ERP Software is and
how it can be incorporated in Odoo for complete accountability of your
business transactions. With our exclusive configurations and tax
settings, customized specially for KSA based companies, we ensure that
this aspect can be tackled with ease and you get a VAT Enabled Odoo
Software in Saudi Arabia.
Value Added Tax (or VAT) is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions. VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets. There are only a handful of VAT Enabled ERP Software Solutions in Saudi Arabia.
In a VAT Enabled Odoo Software for Industries in Saudi Arabia, VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service, as illustrated below:
The consumer pays the VAT cost on purchased goods and services. Businesses pay the government the VAT collected from their customers’ purchases and refund the VAT they paid to their suppliers.
In a VAT Ready Odoo Software, the customer and vendor taxes are managed on product level so it can easily manage the exempted products from the taxes. Taxes are maintained differently by customer taxes and vendor taxes.
When selling the same product to a customer tax will be automatically populated on selecting that product and will calculate the tax on the product price. It applies same for the vendor bills. This is where a VAT Compliant Odoo in Saudi Arabia can make a difference.
Based on the above journal entries, we can have a look at the ledgers of ‘Sales Taxes Payable’ which will be the Net VAT payable to the government. This is your VAT Ready Odoo Software.
Participate on our social stream.