Oman’s tax authorities have authorised the use of simplified VAT invoices for supplies under OMR 500. In order to take advantage of simplified invoicing, VAT-registered businesses must notify the Sultanate of Oman Tax Authority using the supplied document.
Oman’s new VAT regime
Oman introduced VAT on 16 April 2021. The Tax Authority recently received its first VAT returns.
Taxpayers should note that the simplified invoices require all information to be provided as per Article (147) of Oman’s VAT Regulations.
Contact a VAT specialist if you require further guidance, and to avoid the possibility of filing noncompliant returns.
Nonresident companies and Oman VAT
Oman is applying a multi-phased VAT rollout, according to turnover. Companies with a higher turnover must register first. However, the threshold does not apply to foreign businesses.
Nonresident businesses that operate in Oman must therefore register for VAT, regardless of turnover.
Be aware of record keeping requirements
All companies that file VAT returns in Oman should take note of the tax authorities’ record keeping requirements. In terms of the VAT regulations, all VAT-registered entities must keep records for ten years. These include relevant customs documents and invoices.
Businesses that neglect to keep records, or issue incorrect invoices, may therefore be subject to fines.
VAT invoices, simplified
VAT compliance is complex, even when using relatively simplified invoices. Taxpayers need to file regular returns, providing comprehensive, accurate and up-to-date information. And when you have VAT obligations in more than one country, compliance can become exponentially more complex.
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