FAQs on Oman VAT Return

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Yarab A | Updated on: September 16, 2021

With the implementation of VAT in Oman, filing VAT return is one of the key obligations that all registered businesses must adhere to. On this note, the Tax Authorities (TA) have designed the VAT return format in which the details of supplies along with the VAT due or deductible need to be furnished. The following FAQs on VAT return will help you answer most of the questions that you may have on VAT return.

Vat Return in Oman

Oman VAT Return Format

  • Is it mandatory for every registered business to file a VAT return in Oman?

Yes, all the registered businesses must submit the VAT return.

  • How will I file my VAT return in Oman?

VAT return in Oman is to be filed online. A registered business is required to prepare the VAT return data in the prescribed format and furnish it in the VAT portal.

  • Will I be allowed to file a physical VAT return?

We expect that all the VAT returns will be accepted only in online mode.

  • What is the return filing period in Oman VAT?

The standard VAT return filing period is on a quarterly basis. The following are the return filing periods:

    • January to March
    • April to June
    • July to September
    • October to December

  • What is the due date to submit a VAT return in Oman?

The last date to file a VAT return is within 30 days following the end of the quarter. For example, the last date to file VAT Return for April to June tax period is 31st July.

  • Is it possible to file a revised VAT return?

Yes, you can revise the VAT returns if any corrections need to be applied for the return that is already submitted. This needs to be done within 30 days of the error or omission being discovered.

  • Is there any format in which the VAT returns need to be submitted?

Yes, the tax authority has prescribed the VAT return format in which the details of supplies need to be furnished by all the registered businesses.

  • What are the details to be furnished in VAT return form?

Broadly, the details of all your supplies – purchases and sales, output tax, input tax, input tax-deductible, and tax due needs to be furnished in VAT return form. To know more, read VAT Return format in Oman

  • Do I need to declare the details related to import of goods?

Yes, the details related to import of goods need to be declared in the VAT return form. There are separate sections related to import of goods in which the values need to be mentioned.

  • I supply goods that are taxable at 5% VAT and export goods to different countries. How should I declare the details in the VAT return form?

The VAT return form is designed to show both taxable supplies liable for standard rate of VAT at 5% and zero-rated supplies separately. In your case, you need to declare standard rated VAT supplies and zero-rated supplies separately.

  • I have imported the goods on which VAT is to be paid on a reverse charge basis. How should I declare those details in VAT return?

The VAT return form contains a separate field for reverse charge supplies, in which you need to furnish the details.

  • My input tax amount is more than the output tax. How will I adjust and declare it in the VAT return?

In the above case, it will result in VAT refundable, which can be either carried forward to the next VAT return period or claim as a refund (if more than 100 OMR).

  • Are there any additional documents that need to be attached along with the VAT return?

No additional document is to be attached while submitting the VAT return.  Only in the case of claiming VAT refund (more than 100 OMR), you need to fill and attach the ‘Tax Payers’ checklist excel provided by tax authorities along with the return form.

  • What will be the consequence of not filing the VAT return?

Failure to submit a VAT return may lead to penalties.

  • What is the amount of penalties applicable for non-filing of a VAT return?

The administrative penalty will not be less than 500 OMR, but not exceeding 20,000 OMR. Also, in some cases, the imprisonment penalty is applicable.

On an overview, the VAT return form requires you to furnish the details at a summary level, meaning you need to consolidate the details of supplies/VAT and mention the total value. If you closely observe, for certain sections, the detailing is not just the consolidation of sales or purchases. Instead, it requires a break-up or furnishing details based on the eligibility. For example, you need to furnish the details supplies-wise, mention only the value of expenses or purchases that are eligible for input VAT deduction etc. Here is why a right business management software plays a key role.

Business management software not only help you to account VAT transactions, but also triangulate your business records to generate the accurate VAT return in the prescribed format. This is exactly what TallyPrime, a business management software is designed to do. Using TallyPrime, you can record different types of supplies such as domestic, exports, imports, GCC, reverse charge etc. and auto-generate the VAT return report.

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