BMS Oman is offering all kinds of VAT services in Oman such as VAT registration, VAT return filing, VAT audit, VAT deregistration, VAT refund. BMS Auditing does this for you with exceptional VAT services. If you are a business looking for VAT services anywhere in Oman, save your valuable time by outsourcing VAT services to BMS. Let’s educate you about VAT and the services available through this article.
VAT Consultants in Oman
BMS Oman provides awareness of Oman VAT to be compliant with the VAT laws. We have experienced and highly qualified VAT advisors to optimize the impact of VAT on the business. You could always rely on the advice from our VAT consultants in the country for strategic planning, information on VAT registration, VAT Return filing, etc.
What is VAT in Oman?
Value Added Tax in Oman (VAT) is an indirect tax added to the cost of consumption of goods and services at every stage from the point of manufacturing to the final customer. Value Added Tax or the VAT was introduced in Oman in April 2021 and became the 4th country after UAE, Saudi, and Bahrain to have implemented this new scheme.
Oman has set a 5% VAT on goods and services based on the GCC framework. VAT offers many opportunities, and has a few challenges in store. The VAT framework is critical and companies often find it difficult to manage the situations.
Taxable businesses in Oman are liable to obey the laws of regulations of the Royal Decree to prevent fines or penalties. Most firms outsource VAT services so they could focus on their business goals. Every business should be aware of the VAT regulations of the respective country, and hence you need an expert team that provides efficient and effective VAT services in Oman.
Factors to be considered for VAT in Oman
If you are running a business in Oman, you need to consider certain key factors regarding Oman VAT:
- Businesses should collect 5% VAT only on taxable supplies except for the zero-rated products and hence must understand the products that are made.
- Evaluate if the products belong to the zero-rated or exempt category.
- If the products do not belong to the zero-rated or exempt category, it is concluded that they are taxable and should be charged 5%.
- If a few are zero-rated or exempt types, apart from these, the rest are taxable and should be charged 5% VAT.
VAT Implementation in Oman
VAT threshold criteria before VAT registration for your business are,
- A business meeting the mandatory registration threshold of OMR 38500 in a year must register for VAT
- A business could voluntarily register if the annual expenses and imports exceed 19250 OMR
VAT registration in Oman must be done through the Tax Authority’s online portal.
VAT Rates in Oman
- The standard rate for the goods and services - 5%
- Zero-rated- 0%
- Exempted - No VAT
What are the Zero-rated VAT products in Oman?
- Food products such as dairy products, fruits & vegetables, fresh eggs, water, tea & coffee beans, sugar, salt, bread, grains, baby food products, fish, meat
- Medical equipment and medicines
- Investments in Gold, Silver, or Platinum
- Crude oil, natural gas
- Aircraft transport
- Export of goods and services
What are the exempted categories in VAT Oman?
If the businesses fall under any of these categories, consider yourself to be exempted from the VAT Services Oman.
- Financial services
- Bare land
- Resale of residential property
BMS is one of the leading VAT service providers in Oman. Our services comprise most elements of VAT such as VAT Registration, VAT Refund, VAT Return filing, VAT Audit, and VAT Deregistration. Our VAT consultants will make sure that all VAT regulations are followed, including the right VAT invoice format, timely submission of VAT returns, and many more procedures that will help you reach your objectives.
The mandatory VAT registration threshold is OMR 38,500 (mandatory VAT registration). However, it is possible to apply for voluntary registration above OMR 19,250 (voluntary VAT registration). The threshold is based on annual sales for the rolling preceding 12 months.
Non-resident businesses making taxable supplies in Oman must register for VAT.
BMS provides the most exceptional VAT registration services in Oman. We assist you in analyzing the business turnover to realize if you need to register for VAT or wait for a while. BMS helps you to apply for online registration and get the VAT number for the company and the VAT certificate issued by the Oman Tax Authority.
According to Oman VAT, a tax invoice must be issued to the business. To take the advantage of the simplified VAT invoice, the registered businesses must notify the Oman Tax Authority using the required document. It is quite complex to understand VAT compliance even when simplified. Taxpayers should file the returns regularly, providing accurate and up-to-date information. In the case of VAT obligation in more than one country, VAT compliance could be more complex.
However, with the effective and latest technology from BMS, VAT compliance has become easier, faster, and simple. Contact BMS for the best solution to solve the complicated VAT compliance issues.
A VAT Return form is a summarized statement implying that the registered business should submit the collective details of the products such as total sales purchases, input VAT, output VAT, and VAT payables.
Although VAT Return filing is integrated, businesses should present the details separately in these categories:
- Standard rated goods
- Exempted goods
- Reverse charged products
- Intra GCC products
BMS provides professional and effective services for VAT return filing in Oman. We have a professional team with great knowledge and expertise in taxation. Since VAT filing is new to businesses in Oman, our team will assist you with the efficient services you need.
BMS in Oman is a team of extensively knowledgeable and experienced professionals who understand your tax position and provide customized VAT filing services accordingly.
VAT return filing procedure must be followed by all the VAT registered businesses. In the VAT return filing process, you can adjust the input VAT with the output VAT and obtain the payable. Based on the value of input and output VAT, the result would be VAT payable or VAT refundable.
If output VAT is more than input VAT, the balance will be VAT payable, wherein the business has to pay to the authorities. If the output VAT is lesser, the excess will be a VAT Refund. BMS promises to offer VAT Refund services in Oman. We have experienced VAT specialists ensuring VAT compliance with the most effective VAT refund services.
VAT Voluntary Disclosure
The form for the VAT voluntary disclosure is provided by the Oman Tax Authority to the taxpayer to notify of an error or omission in the tax return or refund application. This form requires strong consideration and it is suggested to take professional advice from a certified tax consultant before making a voluntary disclosure, hence the consequences could be noted and addressed.
A person registered with VAT could apply for De-registration on the following days:
- In 30 days from the date of terminating the activity permanently
- 2 months from the end of the tax year
The person who de-registered must maintain the records and accounting books mentioned in the law and regulations for ten years from the notification date of cancellation. The person is liable to allow inspection of the records and the accounting books whenever inquired by the authority.
At BMS, we assist you with the cancellation of VAT registration. The deregistration is also known as the cancellation or termination of VAT registration, done when the business has to cancel or terminate the VAT registration with the Tax Authority.
VAT Audit is the government’s evaluation of a company’s taxable group duty. The Tax Authority conducts this audit to ensure the fulfillment of the liabilities, and collection of all the taxes due and sent to the government within the specified period.
BMS has its own procedure and method to review post-implementation compliance so the errors and issues are identified and fixed.
Processing VAT in Oman without being aware of the procedures could be risky. If you do not follow VAT laws and regulations, you could be imposed with a VAT fines and penalties in Oman. To avoid such consequences, you need to consult with VAT professionals. The main objective of VAT consultancy is to provide effective and customized VAT solutions to businesses in Oman.
This allows the taxable person to request a review of the decision made by the Tax Authority in Oman. All the companies in Oman need to be aware of the laws for the successful running of the business. A business or a person who receives a penalty from the Tax authority is eligible to apply for VAT Reconsideration. The authority will then review the decision and remove the penalties if the business successfully proves the case.
Outsource your VAT Services with BMS Oman!
BMS Oman is fully staffed with a team of knowledgeable and skilled VAT consultants that will assist you in managing your company successfully by offering the finest and most reliable VAT services. Our VAT specialists will comprehend your company and assess the effect that VAT will have on it.
Consult BMS Auditing Oman for any VAT-related queries and stay compliant with VAT.