Oman Guide: What is the Adjustment of VAT in Oman?

The Taxable Person at a date later to the date of supplying, adjust the value of Tax Due in the case of cancellation or rejection of the goods and services, fully or partially whether the cancellation is obligatory or agreed, as per the following conditions:

• The cancellation or rejection occurs after the Tax Due Date.
• The Taxable Person in Oman issues a credit note as required under these Regulations and must include a reference to the tax invoice numbers.
• Show the adjustment in the accounting records.
• The return of goods. The value of the Consideration is returned fully or partially within three months from the date of supplying in case of delivering the Goods, provided no party has earned a material or other benefit from this return.

How to Adjust the Value for VAT in Oman?

The Taxable Person in Oman may reduce the value of the goods and services per the following conditions:

• The Taxable Person has a commercial policy that is published and consistent for discounts.
• The reduction via a credit note issued by these Regulations.
• Reflected in the accounting records.

The Taxable Person upon the occurrence of a change or an adjustment. It may cause an increase in the value of the Tax Due on the goods and services may:

• Issue a debit note by the conditions set out in these Regulations provided it includes reference to the numbers of the original tax invoices that have been changed or adjusted.
• Adjust the Tax Due in the accounting records.

What are the conditions to adjust the Value on non-payment in Oman?

The Taxable Person may adjust the value of the Tax Due in Oman if the Consideration was not fully or partially collected, provided meeting the following conditions:

• The unpaid Consideration is a result of supplies within the Activity of Taxable Person.
• The Taxable Person has listed this unpaid Consideration on each supply recorded in his accounting books and records, required to be kept per the Law and Regulations.
• The Taxable Person has followed the required procedures stipulated in these Regulations. The value of the supply recorded in his books without VAT is over Five Thousand Omani Rials.
• The Taxable Person has declared and paid the Tax Due on the goods and services to the Authority.
• The period between the tax payment due date mentioned on the invoice and the date of the adjustment by rules is not less than twelve months. If states no tax payment due date in the invoice, deemed to be the tax invoice date.
• The Taxable Person must write off the value of the Consideration for the goods and services as a bad debt.
• The Supply is not made to Persons related to the Taxable Person.
• The Taxable Person must notify in writing the customer of the amount adjusted and include the wordings.

In all cases, The Taxable Person in Oman may adjust the value of the Tax on Supplies within three years from meeting conditions stipulated.

How to collect the Outstanding Consideration for VAT in Oman?

The Procedures necessary to collect the outstanding Consideration include the following:

• The issuance of a final judgment is issued obliging the debtor to pay the debt to the Taxable Person.
• The Taxable Person obtains a debt performance order from a competent judge.
• Proof of the debt for restricting and liquidating the debtor’s estate in the event of his death (before a competent court).
• The claim of the Taxable Person of the debt to the liquidator. In dissolution and liquidation of the debtor company.
• Performing the necessary measures to achieve the debt and accept it permanently in the event of a judgment declaring the debtor bankruptcy in front of a bankruptcy manager.
• Engaging in Judicial conciliation, with the debtor giving up his money in the event of declaring his bankruptcy and certifying the conciliation.
• Take the necessary measures to achieve the debt in the event of a ruling to open the procedures for bankruptcy protection before a Magistrate.

What are the duties of the Taxable Person for Adjustment in Oman?

The Taxable Person who adjusts the Tax Due in Oman on the goods and services because of non-payment of the Consideration fully or partially must keep a separate register to record the following:

• All amounts that are not paid and written off as bad debts.
• The Value of Tax claimed for deduction.
• Tax Period on claiming the paid Tax.
• Value of Tax calculated for each good or service.
• Tax Period of reporting Output Tax.
• Amount paid for each good or service.
• Name and address of the consumer.
• Tax invoice date and number, or its replacement.

The subsequent payment of amounts not paid or otherwise settled, and the corresponding Output Tax becomes due in the Tax Period. The collection of these amounts took place within the limits of it.
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