VAT: Just three letters that changed the way businesses in the GCC keep their books.

Most business owners in the UAE, Oman, or Saudi Arabia already know how important VAT compliance is. The rules here are so strict that even a tiny mistake in your accounts can cost fines or unnecessary trouble with the authorities.

Over the last few years, multiple companies in the region have turned to TallyPrime to avoid this complexity by automating their accounts, invoices, and taxes. But the main question that occurs from lots of new and potential users is simple: Can TallyPrime handle VAT in the UAE, Oman, and KSA with ease?

Two answers are there. The shortest one is: YES. But the longer answer is even more useful, because VAT rules in these countries are slightly different, and your software needs to be configured properly to meet local requirements. Well, Tally does that flawlessly.

Today, you’ll get to know exactly how Tally Cloud works with VAT in your country, so stay till the end.

VAT in the GCC: UAE, Oman, & KSA

The GCC countries share a basic VAT framework, but they don’t all play by the exact same rulebook. 

So let’s see how VAT works in different places in the GCC at a glance:

• UAE and KSA both introduced VAT at 5% in 2018.

• Though in the UAE, VAT remains the same, KSA increased the rate to 15% in 2020.

• Oman joined in 2021, also with a 5% VAT rate.

Till now, the general concept of VAT is similar, but each country’s tax authority has its own rules for invoices, returns, and record keeping.

VAT in the UAE: How Tally Prime Complies

In the UAE, VAT is a steady 5%, but the Federal Tax Authority (FTA) has specific rules for VAT invoices, returns, and record-keeping.

What’s needed:

• Company details.

• Financial Statement & Income Statement.

• Balance Sheet.

• Tax Returns.

• Depreciation Schedules.

• Bank Statements.

• Payroll Records.

Tally Prime can:

• Create invoices with the correct format and fields.

• Handle designated zone entries so they show correctly on your return.

• Show VAT amounts clearly, including the TRN.

• Generate FTA-compliant VAT returns.

• Recognise when a sale is standard-rated, zero-rated, or exempt.

• Store data for the required retention period so you can show proof during an audit.

Many UAE businesses, from Tally Single User licenses for small shops to Multi User setups for large trading companies, use Tally Prime UAE because it’s reliable and easy to adapt.

VAT in Oman: How Tally Prime Complies

In Oman, VAT is newer than in other countries, but the rules are strict. The Oman Tax Authority expects businesses to file returns accurately and that too on time.

Oman’s VAT system is similar to the UAE’s but not identical. The OTAs’ reporting style is different, and they have their own list of exemptions.

• Proper record keeping.

• VAT classification.

• File VAT returns within 30 days.

• Understand the VAT refund process.

• Regular Review.

• Details about company formation.

• Include corporate bank account details.

• PRO Services.

• Work Visa.

• Investor Visa

Tally Prime helps by:

• Applying the correct VAT rate to goods and services.

• Separating VAT-collected amounts for sales and VAT-paid amounts for purchases.

• Generating return reports in a format that matches Oman’s filing requirements.

Omani companies also like Tally for its Tally Cloud access, which allows users to review VAT reports even when they’re not in the office.

VAT in KSA: How Tally Prime Complies

KSA is the place where everything gets interesting. The Kingdom has some of the most advanced e-invoicing requirements in the GCC. The Zakat, Tax and Customs Authority (ZATCA) requires businesses to issue invoices in a specific digital format and store them securely.

They ask for:

• Business name & other details.

• Addresses.

• GAZT electronic identification number (if available).

• Commercial Registration number (CR).

• Date of VAT registration.

• The annual worth of taxable products

Tally Prime supports:

• VAT calculation.

• Customizable invoice formats to match ZATCA’s e-invoicing rules.

• Data storage that meets the country’s record-keeping standards.

If you operate your business from multiple locations in KSA, then use Tally Multi User so that all branches can issue VAT-compliant invoices under one connected system.

Why Tally Prime Works Well for VAT in GCC Countries

Well, it comes down to adaptability. Tally doesn’t force its users into a single way of working; instead, it bends to fit your business while still matching the requirements.

• Tally Customization: If your business has unique invoicing or reporting needs, Tally can be customized to match them.

• Built-in Local Compliance: Now you don’t have to manually figure out tax codes for each country.

• Flexibility: You can make changes easily with TallyPrime when tax rules get updated in your region.

• Easy Renewals: Apart from these, Tally Renewal helps you get the latest features and tax compliance updates.

At the end, it’s time to answer the original question once again. Yes, Tally Prime is VAT-compliant in the UAE, Oman, and KSA. With the right setup, it actively makes compliance easier, and you get accurate invoices, clean records, and ready-to-submit returns without the last-minute scramble.