Simplified VAT Compliance with Tally.ERP 9 – Release 6.3


Tally Solutions | Updated on: December 30, 2021

5% VAT will be implemented in the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) from January 2018, as mandated by the GCC (Gulf Co-operative Council).

If you are a business owner, then, on the one hand, you might be eager to align your business to VAT, while on the other you might be wondering where to begin? The following questions are probably running through your mind.

  • How to make sure that my business practices are VAT compliant?
  • How will I be able to focus on VAT and business activities at the same time?
  • How to make sure that my VAT return is filed correctly?
  • I need to be ready for audits anytime. How do I ensure this?

Well, where to make the start is the bigger question. Start by recording transactions and generating invoices in a VAT compliant way.

Here's why you should get Tally.ERP 9 Release 6.3

Watch video: Getting started with Tally.ERP 9 for GCC VAT compliance

Credible software

Tally.ERP 9 is accredited by GAZT (General Authority of Zakat & Tax) in Saudi Arabia. It is also compliant with the VAT guidelines as prescribed by the FTA (Federal Tax Authority) of UAE.

If you are in the UAE, you can generate your VAT return in XML or MS Excel format and VAT Audit file in ASCII format as prescribed by the FTA. The return gets generated by breaking down the taxable sales transactions Emirate-wise as mandated by the FTA.

Simple start for recording VAT compliant transactions and invoices

If you are planning to computerize your business, Tally.ERP 9 makes it very simple an easy for you. You can start recording transactions and creating invoices within minutes of installation.

Create invoices with single items, multiple items, multiple tax types and even multiple currencies. Invoices with multiple currencies can be printed with the value breakups of the transactions in terms of the different currencies. VAT gets calculated on the base currency (the currency of your country).

If you are moving your business data from any other software to VAT compliant Tally.ERP 9, then only an add-on is required to be purchased.

Print tax invoices in Arabic

One of the most innovative features of Tally.ERP 9 is that it lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

Error detection and prevention capability

Tally.ERP 9 has the unique capability to automatically detect errors, display the reasons for errors and let you correct them. For example: You will get alerts on errors such as tax mismatches, missing tax components, wrong TRN nos., and so on. With this capability, you can be sure that your business data is correct, up-to-date and VAT compliant.

Manage all types of transactions

Whether you are a trader, retailer, exporter, importer or a wholesaler, Tally.ERP 9 can handle VAT transactions for a range of business scenarios that you encounter every day. These might include discounts, freight charges, self-account for reverse charges, input tax credit and advance receipts.

Tally.ERP 9 gives the flexibility to let you configure VAT as it fits your business. For example: You can define tax at any level such as stock items, ledger, group, etc. as suitable to the nature of your business. If you are purchasing capital goods, Tally.ERP 9 lets you decide how much input tax credit you wish to claim. If you use the capital good to produce exempted goods in the future, you can reverse the input tax credit and make adjustments.

Get in-depth reports before generating VAT return

Generate your VAT return after getting a clear picture of tax calculations and analysis in the Tax Calculation report, with Tally.ERP 9. The report gives a complete overview of all transactions, total amount of tax to be paid and refundable amount if any. It lists down transactions which are included and excluded in the VAT return. You can drill down to find out why certain transactions are excluded, how tax has been calculated, and so on. The tax calculation factors in changes in price, sales returns, escalations, de-escalations, advance receipts, reverse charges and other adjustments.

You can save and retain your own digital copy of the VAT return. In case you make any changes in the masters or transactions, you can track them to the last detail. Tally.ERP 9 gives you the flexibility to recalculate the VAT return. You can either override the previous copy, or have a new Revised Copy.

File your VAT return with confidence!

Reverse charge and advance receipts

Tally.ERP 9 auto-populates all transactions on which reverse charge is applicable in the Reverse Charges report. It lists transactions for which liability has already been booked and for which liability needs to be booked. You can pass Journal Vouchers from the same screen for booking liabilities.

Refer the Advance Receipt report to find out advances for which you have already created tax liability and for which you need to create, for a given period. Tally.ERP 9 helps you book liabilities from within this report itself. You can pass just one single Journal Voucher for all the advances in a single click. If your business is based in the UAE, you can do the same Emirate-wise.

Easy upgrade experience for existing users

If you are already using Tally.ERP 9, then you can upgrade to the VAT compliant 6.3 version easily and quickly. As soon as you upgrade, your current version will direct you to the Tax Configuration screen and prompt you to enter tax information such as your TRN no, tax period, etc., after which you can immediately start recording transactions.

You can update TRN nos. and other compliance information of your buyers and suppliers from a single screen in one click. You can also do this by importing an MS Excel file containing TRN nos. of all your parties into your Tally.ERP 9 data. The details will get updated automatically.

Tally is your business partner for VAT compliance

Tally.ERP 9 Release 6.3 combines speed, simplicity and reliability to make your journey with VAT a comfortable experience. Let Tally.ERP 9 manage all the VAT compliance for you while you focus on business growth.

With Tally.ERP 9 you can computerize your business with the right VAT ready software and without disrupting your day-to-day business activities.

Visit TallyHelp for further information.

Read Release Notes to know about other improvements in this release.

If you are already using Tally, click here to check if you can upgrade to this release.


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