VALUE ADDED TAX IN KSAThe 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.
Since 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.
What is VAT?
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.