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Oman Guide: What is Input Tax treatment in Special cases for VAT in Oman?

VAT in Oman
What is Input Tax treatment in Special cases for VAT in Oman

The Taxable Person in Oman is not obligated to adjust the Input Tax if the goods supplied are lost, damaged, or robbery. He shall notify the Authority of that within a period not exceeding thirty days from the date of his observation. The notification on the form prepared for this purpose, appending the reports and documents stipulated by the law, includes the documents evidencing the loss, damage, or burglary and reasons.

The Authority for VAT in Oman may examine the premises to establish the loss, expiry, or robbery within thirty days from obtaining the notification. The observations are recorded in an inspection report. If the workplace is not put under inspection by the Authority within the specified period. The Taxable Person is not required to adjust the Input Tax for the lost, damaged, or theft goods.

If the Taxable Person fails to notify the Authority within the specified period, or the Authority confirms that the reports and documents submitted by him are not accurate. He becomes needed to adjust the Input Tax on the lost, damaged, or theft goods.

What are the conditions for Pre-registration Input Tax for VAT in Oman?

A Taxable Person for VAT in Oman may deduct the Input Tax incurred on Goods supplied to the Taxable Person or imported by the Taxable Person before the effective date of registration, as per the following conditions:

  • The Goods are supplied to, or imported by, the Taxable Person within a period not exceeding three years, calculating back from the effective date of registration, and are still ready for use.
  • The Taxable Person has the right to deduct Input Tax in Oman on these goods.

A Taxable Person in Oman may deduct the input tax incurred on services supplied to the Taxable Person before the effective date of registration as per the following conditions:

  • The Services are provided to the Taxable Person within a period not exceeding six months before the effective date of registration.
  • The Taxable Person has the right to deduct Input Tax on these Services.

What are the conditions for Pre-registration Input Tax for Capital Assets in Oman?

The deductible Input Tax on any Capital Assets for VAT in Oman acquired before the effective date of registration shall be as follows:

(Total Input Tax on Capital Assets x Net Book Value)/ (Acquisition or purchase Value of the Capital Assets)

If the capital assets are fully or partially used for other than the purposes of the activity, the tax calculated shall be apportioned. If assets are used to make taxable and exempted supplies, the provisions of these Regulations shall apply to calculate the VAT.

The amount of input tax incurred on capital assets before the effective date of registration, which must be adjusted, shall be determined according to the provisions of these Regulations. The adjustment shall commence from the tax year in which the capital asset was acquired.

What is the process for Pre-registration Input Tax for VAT in Oman?

A Taxable Person for VAT in Oman must submit a Pre-registration Input Tax application to the Authority on the form provided for such purposes within thirty days of the effective date of registration, presenting the following details and documents:

  • Specification of the Goods and Services.
  • Purchase invoice numbers and dates for each Good and Service.
  • Amount of Tax paid on each invoice.
  • The total amount of Input Tax claimed in Oman.
  • Name and address of the Supplier for each Good and Service.
  • Tax Identification Number of each Supplier of Goods and Services.
  • Inventory list of all Goods in the claim as of the day before the effective date of registration, in the case the value of these Goods exceeds fifty thousand Omani Rial, it must be audited by an auditor recognized for VAT in Oman.
  • The Documents set out in these Regulations as relevant.
  • Any other details and documents determined by the Authority.

What is the process for approval of the Pre-registration Input Tax application in Oman?

The Authority for VAT in Oman shall rule on the application within thirty days of getting the details and documents specified. The decision shall include the approved value of deductible VAT in Oman. The lapse of the set forth period without a reply shall be a rejection of the application. The Authority may apply the provision related to tax control and inspection on this application.

The Taxable Person may object to the Chairman’s Decision issued to reject the claim fully or partially within sixty days from the date of receiving notification of the Decision. No response to the objection within thirty days from the date of submission is a rejection to the Objection.

The Taxable Person for VAT in Oman may make Input Tax Deduction, starting from the tax return, for the tax period following the period during which he was notified with the approval of the Authority.

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