How to File VAT Returns in Oman?

In Oman, a quarterly VAT return must be submitted by all businesses that are registered for VAT. Even Though firms in Oman file their VAT returns on a consolidated level, they are nonetheless required to submit a thorough analysis of their supplies into several categories, including:

• Standard rated supplies
• Zero-rated supplies
• Exempt supplies
• Reverse charge supplies
• Intra-GCC supplies
• Imports

Let us keep you informed about the guide on VAT Return Filing in Oman.

VAT Return in Oman

VAT Return Filing in Oman is the process of reporting and paying the Tax liability for taxable goods to the Oman tax authorities to avoid Tax penalties. A VAT return is a form that a Taxable Person must be submitted to the Tax Authority (TA) at the end of each Tax Period on a quarterly basis.

The VAT return is regarded as a self-assessment of the tax owed to the TA or refundable from the TA for the applicable Tax Period. This requirement's objective is to make it easier to implement Executive regulations related to VAT distribution. By meeting this deadline, taxpayers will guarantee a quick and easy process for allocating VAT and enforcing regulations.

To estimate the Taxable Person's tax due, the person must look at Net VAT after subtracting any Input Tax from any Output Tax. The VAT return summarises the Taxable Person's supply, Output Tax payable, purchases, and any deductible Input Tax incurred during the Tax Period, and finally represents the Taxable Person's VAT liabilities.

In the form of a summary report known as a VAT return, businesses are required to provide consolidated data on their suppliers, including total sales, total purchases, output VAT, input VAT, and the amount of VAT payable.

Tax Return Filing Period in Oman

When filing the VAT return, consider the time of supply rules to determine which transactions should be included in different Tax Periods. For each Tax Period (which is a quarter of a year), you, as a Taxable Person, need to file the corresponding VAT return based on the supplies made for VAT purposes.

Calculate the total Output Tax due and the Input Tax eligible for a claim in each Tax Period. Summarize the VAT for each period to know exactly where to include these supplies in your VAT return.

The Tax Periods are as follows:

• January 1 to March 31
• April 1 to June 30
• July 1 to September 30
• October 1 to December 31

If you registered for VAT with the Tax Authority (TA) during a specific Tax Period, but not for the entire period, you'll follow the registration dates accordingly.

VAT Return Filing in Oman

All businesses that have registered for VAT are required to submit their VAT returns every quarter by providing supplier information online. Let's examine more closely how to submit Oman VAT returns.

1. Accessing and registering a VAT return

Visit Oman Tax Portal to get started with the VAT Return Filing Process in Oman

1. log in to access the taxpayer's account.
2. Select "Add new return" under the "VAT returns" section.
3. Basic information on the taxpayer will generally populate itself.

2. Submit details for the VAT return

The taxpayer must include details about all supplies, output VAT, and input VAT in this stage. There are seven components to this area, where it is necessary to supply information about supplies like domestic, exports, imports, etc.

The following categories are included in the VAT return:

• Supplies within Oman: The total value of outbound supplies made within Oman, including standard-rated, deemed supplies, zero-rated, exempt, and supplies to other countries in the GCC, is covered in this section.
• Reverse Charge Purchases: Purchases subject to the reverse charge mechanism, including those made from GCC and non-GCC countries, should be described in this section.
• Exports outside Oman: Declare the total worth of any products and services that were exported outside of Oman and are subject to zero-rated VAT.
• Imported Products: Describe the overall cost of imported products, including those covered by the deferral plan.
• Total VAT due: The total VAT payable is automatically filled in this section, and any modifications can be noted.
• Input VAT Credit: The total amount of input VAT that can be deducted must be stated in this section, together with a breakdown of taxable purchases, imports, fixed assets, etc.
• Calculation of Tax Liability: Using the data from the aforementioned sections, determine the net VAT liability or refund.

3. Making a refund request (if necessary)

If you get a VAT refund as a consequence of Filing a VAT return, the Tax Authority may evaluate your Tax return and perform an audit to verify the refund. Any refund owed will be given to the taxpayer immediately.

For which, select the "I want to be refunded" checkbox if your VAT refund that is greater than OMR 100. If you are applicable, you must obtain the "Taxpayer Checklist" Excel document from the Tax Authority's official website and submit it along with your VAT return form once it has been fully filled out. This process is applicable only when claiming a VAT refund greater than OMR 100.

4. Submitting the VAT Return

Click the "SUBMIT" button to submit your application after filling out all the relevant fields and attaching any necessary documents. When prompted, choose "Yes" to submit your application. You will successfully submit your VAT return once it has been verified.

Correction in Oman VAT Return

If you, as a Taxable Person, become aware of an error or omission on your submitted return, remember to submit a revised VAT return within 30 days of discovering the mistake. The revised VAT return will then be considered the official and updated version of your original return.

Any revisions to your VAT return cannot be made after a period of 3 years from the date of its initial submission. Therefore, it's crucial to take prompt action to ensure accurate and timely corrections. 

VAT Payment on Imports in Oman

Usually, when you bring goods to Oman, you pay both VAT and Customs Duties together. But in some cases, if you're a Taxable Person importing goods, you can delay the payment of Import VAT. Later, you'll have to mention the VAT amount on your VAT return for the period when the goods entered Oman. To get this treatment, you'll need to apply to the TA and meet specific conditions, which might include providing a financial guarantee.

Penalties for Failing VAT Returns

The Tax Authority may levy VAT Fines and penalties in Oman on anybody who fails to complete their VAT return within the legally mandated dates, or who includes erroneous data in their VAT return, in addition to other violations.

VAT Consultants in Oman

The most crucial step in Oman VAT Return Filing is the compilation of the return data, which can require a lot of time and effort to merge data from multiple components and identify eligible input deductions.

BMS Oman has the best auditors and VAT consultants in Oman and offers support for the preparation of VAT returns. We make it simpler for you to manage various supplies (such as GCC supplies and RCM) and issue tax invoices. We also help you quickly and accurately create accurate VAT return data. BMS Auditing organizes your company's records effectively while keeping track of daily transactions in order to compile the VAT return in the required format. With our expertise, submitting VAT returns is a quick and easy process. We make sure the filings are accurate and sent on schedule so you can be confident in fulfilling your VAT requirements.