VAT Software in Bangladesh
Considering the new laws and regulations regarding the VAT system and VAT regulations in Bangladesh, companies are moving more and more to acquire VAT software.
Why companies need VAT management software
After 30 years of reporting VAT manually in paper-based documents, companies might wonder, why do they need VAT software all of a sudden. Well, the question has a two-fold answer:
Intricate Calculations made easy:
The process of calculating VAT is quite complicated. Value is added on different steps of production and distribution process and tax has to be paid accordingly. There are different rules for tax calculation for raw materials, work in progress, and finished goods. Sometimes a company can buy the same raw material from different sources, for example, a furniture company can buy the same Mahogany wood from different sellers at different prices, in which case, tax calculation will be different for each case. A company that usually manufactures a product from scratch might decide to buy more processed material for convenience. For instance, an Icecream company that usually buys raw materials such as milk and cocoa powder separately might simultaneously start buying processed chocolate milk for production convenience. In this case, the VAT calculation will be arduous. Using software like Uddogi will make the process significantly efficient and easier.
Record keeping and Transparency:
The calculation of actual value-addition requires detailed recording of payments for goods/services bought; a convention that is not well-practiced in our country. Therefore, when NBR wants to see detailed records or challenge the authenticity of any transaction, companies fail to provide those reports or to stand their ground confidently. VAT software can provide strong support for businesses in these cases. Companies can show that all of their transactions are recorded properly and thus, they have provided the authentic reports if they face any audit.
NBR Enlisted VAT Software in Bangladesh
Till mid-2019, there were only 11 software firms that were eligible for developing VAT management software in Bangladesh. In the last 6 months, 19 more companies have introduced VAT software in the market, which has increased the number to 30 in Bangladesh. In the following link, there is a list of companies that are eligible to provide and maintain VAT management software in Bangladesh.
Features of VAT Software
In order to experience VAT software, Uddogi was tested by the writer. Uddogi is an NBR approved VAT software that has been developed by Nascenia Ltd. The UI of the software is user-friendly and the functions are easy to comprehend. Some of the significant features of the software are:
Paperless VAT calculation
Uddogi has made the days of pushing through tons of paperwork for VAT history. Businesses do not have to worry about creating numerous paper-based reports of VAT returns for NBR as VAT software has made them obsolete. Such software can create and submit concise error-free reports.
Top Manager’s Dashboard
Uddogi provides the managers with customizable dashboards that can be accessed from anywhere through smart devices for the purpose of checking VAT and VDS Balance, Purchase, and Sales records. In this way, transactions and details about VAT can be easily supervised.
Compliance with the new SD & VAT Act 2012
Uddogi is developed keeping congruence with the new VAT and Supplementary Duty Rules 2016. Therefore, managers do not have to worry about keeping records for every transaction or keeping a separate account only for VAT calculation as those tasks will be taken care of by Uddogi.
In conclusion, Bangladesh has brought about a revolutionary change in the case of VAT reporting as they have made the whole process more efficient. It is just a matter of time that all the big companies start using VAT software considering its utility and convenience.
Contributor: Tanvir Ahmad