VAT Services
Value Added Tax for Oman Businesses
VAT is a tax applied at each point of sale on the expenditure. The end consumer will ultimately face the burden of the cost. Companies are required to collect and organize government-aid taxes. VAT is not an additional cost for the company. In general every industry act as a negotiator for the government. Proper Planning is helpful to manage and execute the plan to get high profits.
VAT is not an additional burden or cost for the business. In general, every business act as a mediator for the Government. Only the effect is reflected in the cash flow. So, proper planning and effective management of tax collection and its execution will give added value and cash inflows to every business.
- To prevent errors in filing tax return
- To claim the input tax paid as per the VAT law
- Provide guidelines to avoid fines and penalties
- Maintain the books of account for five years, as per law
- Conducts the tax audit to safeguard the company from material misstatement
- Get updated and trained regarding the latest changes in the VAT law and its impacts on accounting
- Provide guidelines for the preparation of invoices for sales
- VAT compliance issues and control
- Minimising VAT liabilities
- Identifying risk and proper solutions
- Identifying prospective tax planning opportunities
- VAT Filing and payment
- Data recording and organization
- Accounting & Bookkeeping
- Client organization
VAT for Oman Businesses VAT is a tax applied at each point of sale on the expenditure. The end consumer will ultimately face the burden of the cost. Companies are required to collect and organize government-aid taxes.
VAT is not an additional cost for the company. In general every industry act as a negotiator for the government. Proper Planning is helpful to manage and execute the plan to get high profits.
VAT Filling & payment, Accounting & Bookkeeping, Identify Risks, VAT submission control, To control errors in filing a tax return, Data recording and organization, Minimizing VAT liabilities, Provide guidelines to avoid penalties, Conduct the tax audit, To declare the input tax
VAT registration is required for all businesses. Explore more about VAT below.
What is the procedure to register for VAT? Create an e-service account and register for VAT in Oman. Fill up the details as required. Finally, log into your account and start VAT Registration.
Cash receipts are used, instead of VAT invoices No, FTA represents a Tax Invoice as one issued by a registered person. Two Types of Tax invoices are
Detailed Tax invoice, Simplified Tax invoice
Is it possible for Oman nationals to claim VAT? Yes, it is possible for Oman Nationals. There are lots of schemes for VAT, even for unregistered companies. This system is helpful to the people who are constructing new residences in the Oman. VAT Assessment The formula for VAT Assessment VAT = Output Tax – Input Tax Is it possible to claim expenses back? Yes, it is possible to claim expenses back. Is it possible to claim input tax on exempted goods? Input tax paid by companies providing exempt goods or services cannot be claimed as a cost.
One advantage of hiring professional accounting services in Dubai for your company is that you’ll be able to keep track of all of your financial activities. A professional accountant assists with bookkeeping and oversees the financial portion of the company’s operations. Bookkeeping is an important part of any business because it keeps track of your day-to-day expenditures. The assistance of Professional Accounting Services In Dubai not only helps to keep the company on track, but it also helps to avoid any doubts in business dealings.
To register for VAT in Oman, you need to sign up an e-service account by logging into https://eservices.tax.gov.ae and provide the details as required. Then, log in to your account and start the VAT registration on clicking ‘Registration for VAT’ on the dashboard.
If the ‘Non-residents’ make taxable supplies in Oman, they are required to register for VAT, provided there is no Oman resident responsible for VAT accounting on these supplies. Non-residents can register for VAT in Oman with the help of a tax consultant.
No. A registered taxable person will issue a Tax Invoice as defined by FTA. There are two kinds of invoices: Simplified Tax Invoice specifically for supermarkets as well as retail industries and detailed Tax Invoice.
Once the claim for refund is submitted, FTA will review the application within 20 business days and notify the applicant (taxable person) via email, the acceptance or rejection of the submitted claim. Once your claim is approved, the refund will be made within 5 business days.
Yes, they can claim subject to Vat Law. There are various VAT refund schemes benefitting and supporting the Oman Nationals, even for those who are unregistered. This scheme is available to those constructing new residences in Oman solely for the use by the owner and family.
Yes. The tax paid on the import of goods is eligible for input tax recovery. This can claim back through the Reverse Charge Mechanism.
Yes. Fuel expenses specifically for business purposes can be claimed.
The VAT exempted supplies in Oman includes financial services including life insurance and reinsurance of life insurance; financial services that are not conducted for an explicit fee, discount, commission, rebate or similar type of consideration; residential buildings other than the residential buildings which are specifically zero-rated; bare land and local passenger transport.
No. Businesses supplying exempted goods or services are not allowed to claim input tax paid on purchases. The input tax paid would be considered as a cost to the company.
VAT Assessment
The businesses are liable to charge the tax to the customers based on the output and input tax.
Output tax is the VAT collected on selling goods or providing services to the clients. Input tax is the VAT paid on purchasing raw materials for the goods or services.
Hence, the formula for VAT assessment is:
VAT = Output Tax – Input Tax
Compliance
VAT compliance brings goodwill to the business.
VAT law
The business picture gets highlighted once registered under VAT law.
Indirect Tax
VAT is easier to administer when compared to any other indirect tax.
Period
The entire sales and purchases of your business in the germane return period
Sales
The amount of VAT you owe for sales
Purchases
The amount of VAT you are able to claim for the purchases made