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Oman virtual VAT academy
VAT impacts on the Real Estate
With the implementation of Value Added Tax (VAT) in Oman starting from 16 April 2021, companies operating in the Real Estate industry are expected to experience a significant impact on their business operations. The lead time on major projects and the VAT exemption on certain supplies of residential property are expected to create additional complexities to Real Estate businesses in Oman. Bearing in mind the penalty regime as per the new legislation, it is essential for businesses to understand the application of these rules in order to reduce the risk of non-compliance and also effectively manage their VAT position.
Deloitte’s indirect Tax practice will therefore dedicate the sixth session of the Oman virtual VAT academy to the Real Estate industry. The session will be held on Tuesday, 19 January, 2021 and will discuss how VAT interacts with companies within the Real Estate industry and what the likely issues businesses will face in preparation for entry into the VAT system. Below are some of the topics that will be discussed in more detail during the webinar:
- Overview of the key risks that businesses should keep in mind when undertaking their Oman VAT implementation;
- VAT registration and transition period rules;
- Treatment on exempt supplies, mixed use developments, construction and transactions beyond first sales;
- VAT implications on retention payments and advance payments and considerations of the impact on transitional contracts;
- VAT on continuous supplies/supplies with multiple milestone payments;
- Engineering, Procurement and Construction (EPC) contracts – issues experienced in other GCC VAT jurisdictions;
- Staff accommodation;
- Input tax recovery on mixed use properties;
- Importance of supplier communication and contracts;
- Lessons learnt from experience in other GCC countries that implemented VAT.