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As of 1 January 2018, VAT has been introduced in the UAE at the rate of 5% on most goods and services. This means that VAT-registered businesses have to:
By implementing Infinite E-invoice Suite you can ensure smooth transition of your business to the new VAT regulations. With an EDI (Electronic Data Interchange) solution you are able to exchange various invoices and other messages (eg. purchase orders (PO), advance shipping notices (ASN), delivery/receiving advices, credit notes) electronically via the system. If you decide to exchange invoices via Infinite E-invoice Suite, the system will have all VAT-related issues covered. This means that all VAT transactions will be automatically processed by the system.
With VAT in place, the archiving of transaction documents gets as important as never before. Storing paper documents comes with extra cost and additional administrative burden. Instead of relying on physically archived documents, you can archive your documents electronically using Infinite E-archive Suite.
Starting from 2018, all GCC businesses will be required to store the transaction documents i.e. invoices, records, VAT returns, accounts, etc. With Infinite E-Archive Suite you can easily comply with the upcoming requirements and have convenient access to docs for the VAT audit.
Infinite E-archive Suite is a comprehensive solution for any organization that is required to store e-documents for an extended period of time. Data is housed in the controlled area designed for the long-term data storage.
When it comes to the e-invoicing technology, GCC companies should look for e-invoice providers offering a wide spectrum of e-invoicing technologies legally compliant with the new VAT regulations.
These days, the most widespread technological solutions include:
- EDI Invoice Suite (Electronic Data Interchange),
- PKI Invoice Suite (Public Key Infrastructure).
The selection of e-invoicing technology is conditioned by the volume of invoices handled by a given trading company. EDI invoicing is recommended to companies with a large volume of invoices (both issuers and recipients), while PKI invoicing is suitable for companies with a big total number of invoice recipients but rather a small volume of invoices per a single recipient.
Software integration is another crucial matter. System integration with accounting solutions or ERP is essential in order to achieve 100% automation, when no manual workload is required. By establishing cooperation with an IT provider who can deliver built-in integration engines, invoices are captured from and delivered to the financial system in the fully automated manner.
In order to increase the data accuracy, it is important to opt for solutions with a multi-level validation engine, where all electronic invoices are validated in terms of: size, e-signature, master data, content, EAN code among others.
There is one fundamental difference – an electronic document doesn’t have a copy. Except that, the documents are the same. Before you start sending invoices in the electronic form, all items that need to be included on the document according to the legal regulations and the company requirements, have to be precisely specified. On the basis of this specification each invoice is automatically checked and if there is any inconsistencies, the document is not sent. Thanks to the verification, errors that occur in case of paper invoices can be avoided. You can always change the amount of additional items in the invoice.
Issuing and storing invoices electronically is very simple and convenient. Authorized users have access to invoices anywhere, anytime – so you can forget about searching through big, fat binders for a document needed. There is no need to print and send invoices by post, so you save you money. Our calculations show that paper-based invoicing can cost even 80% more than the electronic one. Thanks to the automatic verification, the rate of incorrect invoices is reduced. Once the invoice is issued, it is immediately available for a recipient and it can be imported into the accounting system.
Electronic invoice, or e-invoice, is issued, just like a paper invoice, in the accounting system. But there is no need to print it. An invoice is sent to a buyer electronically in the form agreed by the parties. In order to launch e-invoicing, you will have to get the recipient’s permission for this kind of invoicing.
Yes, this is one of the possible options of sending e-invoices. However, bear in mind that the authenticity of origin and the integrity of content of the invoice need to be guaranteed by the service provider. If you are interested in sending e-invoices via e-mail, our PKI Invoice Suite is the best bet for you. This solution uses e-mail boxes to deliver invoices in compliance with the UAE legal regulations.
Infinite E-archive Suite meets all legal requirements for e-archiving. The system enables long-term, audit-proof storage of e-invoices. It offers standardized access to all data within the organization so it can be used anytime – of course, only by authorised users. The authenticity of invoice origin and the integrity of invoice content are guaranteed. Invoice data cannot be altered thanks to the qualified time stamp issued by the domestic Certification Authority.