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In light of recent changes to the VAT system’s laws and regulations in Bangladesh VAT software is becoming increasingly popular among businesses. The National Board of Revenue has deferred the mandatory use of specialized VAT software by businesses having an annual turnover of Tk 5 crore or above. Businesses will not have to visit the VAT office with lots of papers in hand, which will reduce the cost of compliance.
Companies may wonder why they need software after 30 years of manually reporting VAT in paper-based documents. Well, there’s a two-part answer to the question.
The calculation of VAT is a complicated operation. Different stages of the manufacturing and distribution process add value, and tax must be charged accordingly. For raw materials, work in progress, and finished products, there are different tax measurement rules. When a company buys the same raw material from different suppliers, such as a furniture company buying the same Mahogany wood from different sellers at different rates, the tax estimate would be different in each case. For convenience, a company that normally manufactures a product from scratch may decide to purchase more processed material. For example, an ice-cream company that normally buys raw materials such as milk and cocoa powder separately might start buying processed chocolate milk at the same time for production convenience. The VAT estimation will be difficult in this situation. Using Vat software such as SmartVAT can make the process much more effective and simple.
The measurement of actual value-addition necessitates meticulous tracking of payments for goods and services purchased, which is not a common practice in Bangladesh. As a result, when NBR requests comprehensive documents or questions the legality of a transaction, businesses refuse to provide such reports. In these situations, VAT Management Software can be extremely beneficial to companies. In order to, Companies may demonstrate that all of their expenses are accurately documented and that they have issued accurate records once they are audited.
There were more than 36 software firms that were eligible for developing VAT management software in Bangladesh. And we are one of them who introduced VAT Management Software in the market. It’s called SmartVAT Software.
Vat Management software is used to keep track of sales, purchases, inventory, production, and payment transactions before generating government-mandated reports. Users can also directly apply a final VAT return to the government system (iVAS in Bangladesh) using the SmartVAT Vat Software.
The SmartVAT Software is a one-of-a-kind application for smoothly managing VAT operations following the National Board of Revenue’s (NBR) compliance with the VAT Act of 2012. Our software was created by a unique team led by some young buds, and the entire architecture was described by a certified VAT Consultant in Bangladesh with over 27 years of experience on VAT. The DI System fully follows the NBR guideline accordingly compliant with VAT & SD ACT 2012, as of GO-16/VAT/2019.
The SmartVAT Software is an NBR-approved VAT software that has been developed by DIGITAL INTELLIGENCE SYSTEM LTD. The software’s user interface is easy to use, and its features are straightforward. Some of the key features of the software are given below:
Our SmartVAT software is developed keeping compatibility with the new VAT and Supplementary Duty Rules 2016. Hence, managers do not need to think about keeping records for every transaction or keeping a separate account only for VAT calculations because SmartVAT Software can take care of those tasks.