The Value Added Tax (VAT) regime commenced on 16 April 2021 where a 5% VAT will be applied to the sale and purchase of most goods and services in the Sultanate of Oman. This represents a major transformation for both the Government and consumers, however, as businesses have the responsibility of ‘collecting the tax’ the greatest challenge is on them to get it right.
Now that VAT is here, it is important to be compliant, as failing to do so poses both regulatory and reputational risks due to the imposition of VAT penalties by the Oman Tax Authority (OTA). It is also an important commercial issue as customers will be seeking VAT compliant documentation from businesses, and you may will find that many of your customers will be querying your invoices and documentation.
To assist you with VAT compliance, Deloitte held a 60-minute virtual VAT webinar on Monday, 24 May 2021. The aim of the session was to equip businesses with the needed information on how to ensure compliance under the VAT Law. Our experts covered the following topics:
- Latest developments post VAT go-live date;
- Key compliance requirements under the VAT legislation;
- Invoicing, credit notes, debit notes, adjustments, and discounts;
- Special Zone rules;
- Imports and exports;
- Proper documentation for input and output VAT;
- Minimum reporting requirements from the system;
- Preparing for your first VAT return filing;
- Audit trail, manual adjustments and record keeping; and
- Useful reconciliation checks to perform at a regular interval.