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VAT implementation in Oman requires businesses above the registration threshold limit to register under VAT. With the VAT registration comes the compliance responsibilities as listed in the VAT law and regulations which businesses need to adhere to.
Issuing a tax invoice, maintaining books of accounts and other records for 5 years, filing Vat returns, on-time payment of tax, etc. are some of the compliance activities that a registered business needs to adhere. While there are plenty of things that you need to do to stay compliant, but it takes your complete focus and you need to devote a lot of time to be compliant right from the invoice you issue to the return you file.
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VAT software products that are designed focusing on Oman VAT will be of great help, making your compliance process much easier. You can manage the compliance with minimum efforts and time, which allows you to focus on the things that matter the most i.e., your business growth. To help you use the choose the best vat software in Oman, we have listed key things that you need to consider in the next section.
VAT compliant Tax Invoice
VAT being a transaction-based tax, every invoice you issue needs to be compliant. The Oman VAT law and regulation prescribes certain mandatory details that need to be captured in the invoice. Also, your customer will be eligible to claim input tax only if you issue a VAT compliant invoice. Else, he will be denied and the credibility that you have built will be impacted. Thus, invoicing is a critical aspect of the business; VAT in Oman makes it even more important.
The VAT software you choose should be the one that is inbuilt to capture all the mandatory details in the invoice and should prevent all possible errors such as incorrect tax, amount, etc. by automating the calculation.
Bilingual Tax invoices
The Oman VAT regulations state that the issuance of the tax invoices shall be in Arabic. However, a tax invoice can be issued in English provided an Arabic translation is provided upon the authority’s request. Though some degree of respite is available to issue it in English, having VAT software that has capabilities to generate bilingual tax invoices, in both Arabic and English alongside the flexibility to print only in English or Arabic is a must. The reason being, you never know when the authorities may request you or even your customer may request you issue an invoice in both Arabic and English. The best VAT software is one that prints bilingual invoices and allows you to generate invoices either only in English or Arabic as per your business needs.
Manage all type of supplies
As a business, you engage in different types of business transactions such as imports, exports, supplies to GCC member states, exempt supplies, etc. and each of these has different VAT treatment. A VAT software should be such that it can handle a wide range of business scenarios that you encounter every day with ease.
Prevention and alert capabilities
The VAT software should be inbuilt with the capabilities that will prevent all possible errors while recording the transactions and alert the users. For example, if you choose tax for a transaction that is not taxable or you might miss selecting the tax ledger for a transaction that is taxable. The VAT software should prevent such occurrences and alert the user about the discrepancies.
Accurate VAT returns
The VAT software must help you generate an accurate VAT return with the minimum effort possible. The VAT software should have built-in intelligence that understands the return requirements and includes only those transaction which should participate in the return. Also, should detect if there are any errors and allows seamless system assisted correction.
Quick VAT set-up
The best vat software in Oman is one that allows you to onboard quickly with minimum efforts and time. Before you start transacting, you need to configure the VAT details such as VAT rate for products, VAT TIN for party ledgers etc. The VAT software should be designed in such a way that your efforts to update 500 or 5000 products remain the same i.e. you should be able to update the details and get started in few mins.
TallyPrime, a business management software in Oman is now enhanced to support Oman VAT. TallyPrime makes the process of VAT compliance seamless and efficient. With TallyPrime, all you need to do is 3-4 simple steps to get started. Using TallyPrime, you can record and generate tax invoices, print bilingual tax invoices, manage all types of supplies, generate Vat accurate returns, and much more.
Businesses are required to submit the tax return electronically through the online portal in the format as prescribed by the authorities. Oman VAT Regulations have prescribed the mandatory information that needs to be declared by the registered person in his VAT return form.
Read more about VAT Rate in Oman
The Oman VAT law mandates every person who conducts economic activity and has a place of residence in the sultanate, should apply for VAT registration.
Get more insights on the type of businesses who should register under Oman VAT
Under the VAT system, tax is levied tax levied on value addition in each stage of the supply chain. This is achieved through the concept of input VAT deduction, which allows the business to set off the VAT paid on purchases (Input VAT) with the Vat collected on the sales (Output VAT).
Read more on what is VAT and how does it work?
VAT being an indirect tax, the levy of tax is going to be at the transactional level. In other words, when you make a taxable supply, you need to calculate the VAT at 5%.
More on VAT calculation in Oman
Yes. Oman announced a 5% VAT for all registered businesses when they make a taxable supply.
Know more about Oman VAT