Taking Tax digital will help individuals and businesses to get their tax right. It means many people are leaving their spreadsheets or paper records behind and moving over to a new system.
The reduction in paperwork you’ll have to deal with is the most obvious advantage of digital tax. Businesses must maintain digital records and submit VAT returns electronically to the Zambian Revenue Authority under the new management style (ZRA). In most cases, these digital records will completely replace physical ones. This means that when completing your tax returns, you won’t need to sift through mountains of paperwork. No more searching for invoices and receipts. Instead, you can relax knowing that all your records have already been digitized and are available. Making Tax Digital has advantages for small businesses that extend beyond tax season. In fact, implementing digital tax can make bookkeeping simpler and more effective throughout the entire year.
Implementing digital tax means all businesses must keep a range of digital records, including:
This may seem overwhelming, and it is. But with the right software, you’ll be able to keep track of and access all this information conveniently. Digital tax can greatly simplify bookkeeping in this way, allowing you to concentrate on other aspects of your business.
Additionally, Making Tax Digital gives small businesses the opportunity to see their financial data much more clearly. You can significantly lower the likelihood of errors by using software to record and transmit your VAT return. When completing your VAT return, for instance, you won’t need to manually enter any numbers into the Government Gateway. When you use I-Rock Invoice to submit your VAT return, the system can automatically check your figures for common mistakes and duplications, ensuring that you only pay the VAT you are due and remaining compliant. The likelihood of you losing any receipts you’ll need to submit your VAT filing are reduced because all your records must be kept digitally.
With a lot of jargon to understand, Tax Digital can be confusing. that why I-Rock offers features to streamline your record-keeping, stay on top of your tax liabilities, and meet all your deadlines once you understand the requirements. I-Rock Invoice is fully compliant with the making tax digital which is the future for Zambian businesses and subscribing now will help you make the switch as easily as possible.