VAT itself is a scary term for many people, and when the word ‘VAT Management Software’ is attached to it, people get so terrified as if they have been put under gunpoint.
However, everything in life can be simplified if you are guided in the right direction. VAT management software is no exception too.
Knowing the ins and outs of VAT is almost a necessity for business people. If you run a business and not planning to get shut down anytime soon, then you must know about the essentials of VAT.
To start with the basics, VAT (value-added tax) is a form of consumption tax based on the extra value that you add to your products and services.
Now the million-dollar question is, what is VAT management software and why one must use it?
To answer the first question, we need to understand first what a VAT software is.
A VAT management software is used to calculate value-added tax for an enterprise. In Bangladesh, VAT management software is used to record entries related to sales, purchase, inventory, all kinds of price declaration, production, and payment associated entries and finally generates government prescribed mushak & reports.
A VAT software also helps users to submit final VAT return system directly.
Who must use VAT management software?
Under NBR terms and conditions, any business that has an annual turnover rate over five crore taka needs to use a VAT management software.
Why Should you use VAT software?
“With thriving business, comes great responsibility.”
In Bangladesh, businesses whose taxable turnover exceeds the VAT registration threshold will need to keep their records digitally using VAT management software as per the National Board of Revenue (NBR).
The introduction of VAT Concept was a spectacular fiscal phenomenon. Within a short period, this tax has exploded from its rudimentary form to become the state-of-the-art tax on goods and services all around the globe.
According to the previous VAT act (1991), companies were to send the paper copies of their VAT returns, which was a big hassle. However, as per the new VAT act (2012), they can submit VAT returns monthly through a simple online form. The new system is much more comfortable with the new VAT management system software.
In recent times, VAT has been increasingly adopted by many developing countries around the world that share with Bangladesh the same policy objectives of development and socio-economic stability and are subject to the same constraints that may affect the efficiency of the tax administration.
The advantages of software:
The existence of technology is to make your life easier. And a VAT software does exactly that. Using VAT software makes VAT management easier than ever before.
Let’s have a look at the advantages of a VAT software:
1. Neutrality: The most significant advantage of the system is that it does not interfere in the choice of decision for purchases. The system is neutral about the choice of production techniques, as well as business organizations. All other things remaining the same; the issue of tax liability does not vary the decision about the source of purchase.
2. Certainty and Transparency: The VAT software is a system based merely on transactions. Thus there is no need to go through complicated definitions like sales, sales price, turnover of purchases, and turnover of sales.
3. Easily accessible: VAT software is also broad-based and applicable to all sales in business; thus there is little room for different interpretations. Similarly, due to the essential feature that it gives credit of tax paid on an earlier stage, the buyer will always ask for an invoice. Thus the scope of tax avoidance will be much less. The disputes will also be fewer. This system brings certainty to a great extent as the buyer knows what tax component is. Thus, the system ensures transparency also.
More features are:
4. Widespread Use: VAT is in use in well over sixty countries throughout the world. Usually, it is a transaction-based consumer tax applicable to both goods and services, with the invoice (on which the VAT liability is shown separately) acting as the essential evidentiary document. It is neutral in effect, the tax liability on sales (outputs) being offset by the tax paid on purchases (inputs). It thus avoids further being charged extra.
5. Harmonized System of Taxation: Vat systems became popular because of its built-in advantage of harmonizing the tax structure. It leaves very little room for interpretation. Ideally, under VAT, there should be only one basic rate. In any case, typically, VAT involves lowering the number of tax rates resulting in the reduction of any legal action.
How to choose your VAT software company
When it comes to choosing the perfect VAT software that supports your business to the point is an essential part of installing a VAT software. Many software companies might advertise themselves as the best software company in Bangladesh without any significant proof but only believe them if they have proof of their claims.
Before investing in a VAT management software system, make sure to tick the below checklist so that no one can scam you.
Know your VAT software companies
- NBR certified company: Not everyone is permitted to provide you with VAT software solutions. Only companies which are NBR approved they can serve you VAT solutions. There are only 19 software companies in Bangladesh which fall under NBR terms, and Southtech is one of them. So this is a significant reason for you to choose Southtech as your VAT management software solution company as you don’t have to worry about their solution quality. You can find the 19 enlisted companies in NBR’s website.
- Internationally certified company: Software companies like Southtech, who have been running their business for over 20 years, they can guarantee you world-class service. VAT is a very critical aspect of your business. Don’t create more hassle by choosing a wrong VAT system. That might do more harm than good. So choose wisely.
- In-depth modules: Software solutions need to be tailor-made for each company. This is a system that you can’t create that fits everyone’s needs. So do a thorough research before you choose a solution. Look deeper into what they offer, how much customizable their services are, do the modules serve the purpose that you are looking for? Only after analyzing these things you can decide if you should invest in that system or not.
- Be aware of fraud: Just like any other industry, the software industry also has some unethical businessmen who would sell you products and services that don’t fit your needs or wants. They would claim to have high-quality authorization (like CMMI level 5 approved), which they maybe don’t have or had before but lost because of poor service quality. Always ask for proof of their claims if you have any doubts. You are investing a lot of money on them; you do have every right to ask for clarification.
What Southtech has to offer you?
Keeping all your needs in mind, Southtech has brought for you the best VAT software available in the market. Our software EastVAT not only makes your VAT calculation easy but also ensures fewer chances for error.
The concept of VAT management software is relatively new in our country. Southtech’s EasyVAT is an all in one system that is qualified to help you with your VAT management.
What makes EasyVAT the best VAT MANAGEMENT software?
EasyVAT has many features that ensure that all your VAT documentation has no glitch. Here are some top features of EasyVAT.
- It follows the NBR guideline. Fully compliant with the VAT and Supplementary Duty Act, 2012. So you don’t need to worry about its authenticity and quality at all.
- The VAT software is applicable for trading, non-trading, production, manufacturing, service, import-export, and small/medium/largest or any other types of companies that need to pay VAT in Bangladesh.
- EasyVAT has the support of multi-company & central BIN number. So now managing your VAT system is just a few clicks away.
- Our products serve a vast majority of industries. Industries like manufacturing, trading, E-commerce, mills and factories, NGO, transport services, you just name it, and we can provide VAT software service to them. We understand that VAT is not a one size fits all product. Thus we have built it in a way that you can customize it your way.
- Easy VAT is the most user-friendly software system that is available in the market now. It works in a way that you don’t have to keep worrying about how to manage your VAT system better. Secure VAT does that for you.
Bangladesh is moving towards the dream ‘Digital Bangladesh’ with each day. And VAT management software is just another step that will help us reach the digital goal. If you are an organization that requires registering for NBR VAT software system, then feel free to contact us today. Our team will be more than happy to answer all your VAT queries.