VAT is a universal consumption tax that is charged on taxable goods and services that are bought and sold in Oman together with the import of goods and services. It is charged and collected at each phase of the supply chain right from the company’s purchase of raw resources to a store’s sale of an end-product to a customer. Since it is a secondary tax system, the listed businesses act as mediators to charge, collect and remit the tax to the consultants.
Oman VAT registration released on February 1, 2021, for chargeable individuals with yearly supplies beyond or likely to exceed 1 million Omani Rial. Companies will need to keep VAT accounts for a minimum of ten years from the end of the year to which they are associated.
These histories will need to be made accessible for review at any time. The first step to make yourself for VAT compliance is by creating invoices following Oman VAT laws since the day of operation. It is expected that the VAT period will be a minimum of one month, and VAT expenses and returns must be filed within 30 days of the closure of the tax period.
TallyPrime competencies for VAT compliant
With VAT execution just a few weeks away, companies are all set to welcome the new tax policy with open arms. From system outline to gaining compliance awareness, businessmen in Oman are prepping themselves to produce significant cash flow and complete tax costs. Using TallyPrime’s VAT-compliant billing, you can follow all the required tax laws.
Using TallyPrime, you can:
- Simplified configuration of the VAT rate
- Design tax rates based on their taxability
- Recording and creating precise invoices
- Create bills in Arabic/English or both
- Develop exception reports for discrepancy dealings
- Accomplish all kinds of VAT transactions in TallyPrime
What to consider in software for accurate VAT compliance?
Technology plays the most exciting, time-consuming, and complex role in the VAT implementation journey. Therefore, it is of major importance that your ERP system supports you systematize VAT calculation. It includes the creation of several types of invoices with many items, multiple tax types, and multiple currencies, tax reports, and the generation of tax invoices. The customized system information must be developed in advance to avoid VAT return filing and audit difficulties. Therefore, using an automated system for VAT compliance will increase your business efficiency. Check our website for Tally Prime VAT today that manages VAT implementation, guaranteeing VAT compliance and business stability.