Tax is an excellent measure for any government to enhance national revenue. It is a significant driver that allows the government to utilize the collected amount towards its development. The GCC nations are highly known for producing oil and its subsidiary products that contribute massively to the global economy.
In Jan 2019, the GCC nations collaborated to enter into the GCC VAT agreement that mandates the nation’s business owners to contribute 5% of their earned profits.
The same gets implemented in Oman, one of the highly growing GCC nations.
This guide highlights the essentials pointers one should know about the VAT proceedings before opening a business in Oman.
VAT in Oman
In September 2019, Oman introduced the concept of VAT from Apr 16 2021, by levying 5% as the VAT rate after scrutinizing the same at various levels.
For business entities, the VAT registration gets applied from Feb 1, 2021.
It is to be noted that registration is mandatory for business entities with an annual threshold of OMR 38,500.
This also turns out to be a voluntary step for the business entities above OMR 19,250.
It becomes of utmost importance for any business owner to proceed with VAT proceedings after the company formation process in Oman.
Advantages of VAT Registration in Oman
A few of the benefits that you can grab by registering VAT for your business in Oman include:
Claim VAT Deduction
Any business looks forward to figuring out the multiple ways to save the business tax. Filing for the VAT returns in Oman helps a business investor to claim the VAT deduction at ease. As per the rules, the input tax can be claimed within three years from the tax invoice date.
Credibility and Business Reputation
Another parameter through which a business can enhance credibility and register for VAT is that it helps enhance the business credibility. Therefore, if you are a foreigner who has established a business in Oman, then you need to make sure that your business doesn’t compromise on the activities that build the reputation.
Easy Audit Proceedings
An audit is one of the core processes conducted by any business, irrespective of the industry and size they hold. An audit report is an ultimate scanner that highlights the pros and cons of one’s business. The moment a business registers for VAT, the same gets registered in the audit books.
Flexible to Manage the Bank Account
Registering VAT also helps the business owners to manage the bank account proceedings at ease. Maintaining proper account balance and meeting the financial deadlines on time helps investors gain numerous benefits in grabbing credit from the market.
Here’s a guide on opening a corporate bank account in Oman that you can go through to know the process in-depth.
Easy to Carry out Financial Proceedings
Holding VAT books makes it easy for any business to get loans and other credits from any financial institution. The records a proof and ultimately enhances the credibility of your business.
The GCC VAT introduction has brought few VAT recording processes and has fetched out a new way to earn revenue. Oman allows the business investors to step in and carry out the business activities backed by the mandatory VAT proceedings.
Thus, you are now clear regarding the essential benefits of availing of VAT services in Oman. In addition, sorting the legal proceedings in an error-free way turns out to be an integral part of the process and other processes.
It turns out to be an intelligent move to proceed with experts as they are well-versed in the entire proceedings.
At Business Setup Worldwide, we understand the core elements that a business investor needs to focus on. Our expert team here is well-versed with the complete process and can help you deal with the VAT proceedings in Oman in a hassle-free way.
For now, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist!