Invoices function as an important purpose for both, the business directing the invoice and the client accepting it. For small companies, an invoice supports expedite the expense by providing customers a statement of the payment that is unpaid. Not just that, a bill also aids you to track your company’s sales and income and retain your books of accounts updated. With VAT in Oman, the invoice issuance grabbed more importance. This is because the VAT law orders all the industries registered for VAT to offer an invoice on making a taxable supply.
What is a tax invoice?
Tax Invoice in Oman just refers to a printed or electronic document which the payable person must issue, and it must comprise of particulars of supply and all other details in accordance with the requirements of law. Businesses that are listed under VAT must now issue a tax invoice for the resource of taxable goods and services. The VAT and guidelines commend the necessities of Tax invoices as it is one of the compliance responsibilities that business must be followed.
When should you issue a tax invoice?
Under Oman VAT, on selling a taxable source of goods and services, a registered industry must issue a tax invoice. The tax invoice should be issued when:
- Supplying of goods or services
- estimated supply
- reception in full or part beforehand the date of supply
Tax invoices may perhaps be issued by third parties on behalf of the taxable person only on the authority’s consent is attained. The guidelines will define the circumstances and instructions to issue tax invoices, their kinds, their substitutes, alterations and the data it must comprise, and cases that are exempted from dispensing a tax invoice.
Components of tax invoice
A thorough tax invoice must be issued for all taxable goods showing, among others, the sum of VAT unpaid and the net value for each line element.
A tax invoice is required to include:
- Mention to “tax invoice”
- Trader name, address, and VAT ID number (VATIN)
- Client name and address
- Serial invoice number
- Date of invoice issued
- Date of supply
- Report and amount of goods or services
- Chargeable amount and unit price in OMR
- Tax percentage
- Amount of VAT charged in OMR
Format of a Tax invoice (Picture)
Currency in which VAT should be issued
The tax invoice is to be issued in Omani Rials or in a foreign currency, but the tax value is to be considered in Omani Rial for each the average purchase and sale price of the currency issued by the Central Bank of Oman.
TallyPrime will uphold regular accounting records in a timely manner that helps transit to the VAT regime.