BMS Auditing's comprehensive VAT Health Check will identify major taxes or compliance areas of a business that need more attention and solves them. Before getting into detail, You need to know more about VAT Health Check and its benefits.
The VAT system in Oman was established in April 2021 with 5% on sales and purchase of most goods and services in the country. VAT was also implemented even in the free zone businesses in Oman. This brought up a major change in both the government and the consumers. However, since businesses have the responsibility to collect the charges, it is a major challenge for them to ensure perfection in their duties.
With VAT implemented in Oman, one needs to be VAT compliant, as the government is liable to impose fines or penalties in case one fails to pay the VAT on time.
Need For VAT Health Check in Oman
What is VAT Health Check? A VAT health check typically begins with a visit to your business location where we complete a detailed VAT questionnaire. This helps in identifying high-risk/high-value transactions that often result in VAT problems or other VAT compliance difficulties.
VAT has a major impact on daily business transactions with respect to purchases and sales. We need need to ensure proper compliance and effective management of the cash flow. Moreover, dealing with the tax authorities would be risky when we are not compliant with VAT.
Although VAT is technically termed as a tax to the consumers and not directed to the business, VAT could obstruct your business with expenses that are irrecoverable.
Benefits of VAT Health Check
Some of the crucial benefits of VAT Health check includes,
- Discovery of chances to improve your VAT position
- Validating that input VAT is being collected appropriately and suggestions for increasing recovery
- Confirming that you are in compliance with or preparing for MTD for VAT
- Assurance that you have applied the right VAT treatment to high-value transactions and common revenue streams
- Detecting problems ahead of a VAT examination, potentially reducing any fines imposed by HMRC
- Improvement of systems, processes, and controls
- Identifying high-level Brexit risks and advising on mitigation
- Acquiring an awareness of current case law and developments that may be relevant to your company
- High-level credibility tests and sample checks - comparable to those performed by HMRC VAT inspectors
- Checking that you are utilizing VAT schemes appropriately
VAT HEALTH CHECK SAVES YOU FROM VAT PENALTIES
If your business does not comply with the VAT, you would be imposed with penalties, fines and interest as per the VAT Law. You must be well aware of the impact of penalties and should be compliant with them by implementing and observing VAT-related systems and procedures. Hence it is necessary to take action at this moment to prevent any queries from the tax authorities.
Once the VAT authority initiates the investigation, you would not be able to identify the faults and take the necessary actions. These risks are apart from the exposures of the income tax that would be affected as a result of a VAT inspection.
Ideal VAT management like BMS Auditing which provides professional VAT services ensures the timely reporting of VAT, hence preventing fines, penalties and interest also identifies the opportunities to obtain VAT (Cost) savings and other improvements.
How Can BMS Help You?
Have you already worked with a VAT adviser to implement VAT? If so, BMS Auditing Oman would be delighted to assist you in testing and validating the findings, assumptions and procedures that had impacted to verify proper functioning, thus minimizing possible risks in future.
We also sample-check data sources, and invoices, evaluate code and do some high-level credibility checks to detect any more anomalies/areas of concern. We may then work with you to quantify any problems detected and make a voluntary disclosure to HMRC, or we can reassure you that you are fulfilling your VAT compliance duties.
BMS makes the necessary checks and reviews your current business position with an interactive process, performing a thorough evaluation of the possible VAT risks and the exposure in the business. The reports created at BMS: Our VAT Health Checkup does the following,
- Highlights the gaps in VAT compliance, thus applying required recommendations to identify main areas to increase efficiency and minimize costs
- Highlights the cost-saving opportunities and the risk management issues
- Recommends ways and sets up a control framework
- Assists in the tax authority paperwork and audit procedures
- Provides the required guidance and training to ensure the right application of VAT treatment
- Deeply analyzes and organizes VAT strategy
- Ensures compliances for issues specific to an industry
- Review of current operating procedures and suggest any changes if required
BMS is one of the reputed firms in Oman, experienced in GCC VAT. The team has highly qualified advisors so you are ensured of VAT compliance and thus prevent VAT fines and penalties.