Corporations are obligated to register for VAT in Oman. All persons to register for VAT in Oman having a place of residence in Oman and handling commercial, industrial, professional, or other activity in Oman with annual supplies that exceed 38,500 OMR. Any person bound to pay tax with no residence in Oman also to register. The process of mandatory registration for VAT in Oman to be done in a phased manner with the opportunity of voluntary registration. Registration for VAT in Oman is done on the tax authority’s website with login at electronic authentication service.
Mandatory VAT registration in Oman will be in a phased manner spread over a year with 4 phases. Non-residents doing business in Oman can register with the Oman Tax Authority irrespective of any threshold limit. Voluntary VAT registration in Oman to be done by persons having a taxable turnover above 19,250 OMR. Oman Tax Authority advises firms to plan VAT implementation by delegating an expert team including principal personnel from across all core business segments for tracking the progress of VAT preparations.
Responsible Person in VAT Oman is any person related to the Taxable Person and represents him in executing the obligations. The Chairman determines the credentials for the Responsible Person in VAT Oman. The Responsible Person can leave Oman for 90 days or less during the Tax Year. If the person wants to stay outside for more than 90 days it can be done by notification to the Authority. The Authority has to agree to appoint another Responsible Person during the entire period of his absence. The duties of the responsible person mentioned in Article 76 of VAT Oman law.
Tax Invoices in Oman need to be issued when making a supply of goods or services in Omani Rials, an option of foreign currency with a condition. Accounting records and books must be regularly maintained and retained as determined by regulations, can be kept in a foreign currency with written approval from the Authority. The accounts of transactions related to supplies of goods and services and the import or export of goods. Tax invoices, accounting records and books, and customs documents are kept for 10-years with an extension of 15 years for real estate.
Tax Representative services in UAE can help interpret the VAT law, determine the taxes, and file VAT returns in Oman. Hiring a tax representative would make it much simpler to fulfill these legal obligations. The Tax Representative Services is assisting in the submission of VAT returns, liaison with FTA on tax matters, keeping records for clients, VAT registration with FTA, preparation of documents for the FTA during VAT audit in Oman, helping with the submission of reconsideration request on FTA decisions, and proceeding with de-registration for the clients.
Tax Return in Oman filed within 30 days following the end of a Tax Period. The return shall specifically include details specified by Oman Tax Authority. Revised Tax Return shall be filed by the Taxable Person to the Authority within 30 days following the discovery of error or omission in the Tax Return submitted. The Authority shall adjust the Tax Return if it is made aware that it contains an error or omission or insufficient. They are required to notify the Taxable Person of the adjustment by the Regulations.
The Taxable Value is the value that is chargeable to tax. The Taxable Value of Deemed Supply is the value of purchase or cost. The cases, in which the value of cost cannot be determined, will be determined by the market value. The Taxable Value of Related Parties transactions are specified by the regulations, where the value of the supply is less than the market value. The Taxable Value of imported goods is calculated by the customs value prescribed by the Customs Law.