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Comprehensive VAT Program


Program Objective:

This three day program deals with an important tax legislation in Oman. The Value Added Tax (VAT), a new proposed integrated indirect tax on sale of goods and services in the GCC region is expected to take effect in the near future.

This program is aimed at fulfilling the following objectives and impact assessment .

Impact Assessment

At the end of the program, the candidates will:

Who Should Attend?
Program Outline
Value Added Tax and Impact Assessment
Module 1: An Overview of VAT
  • Various methods of levying indirect tax on goods and services.
  • General concept of VAT.
  • Different methods for determining Value Addition.
  • Different types of VAT.
  • Invoice credit system.
MODULE 2: An update on what is happening in the GCC region regarding the introduction of VAT & Discussion on other key concepts provided in the GCC VAT Framework Agreement
  • List of member countries of GCC.
  • Unified Vat agreement entered into between member countries.
  • Salient features of unified VAT agreement.
    • Important definitions.
    • Scope of tax.
    • Supply of goods.
    • Supply of services.
    • Deemed supply.
    • Reverse Charge Mechanism.
    • Place of supply.
    • Valuation of supply.
    • Valuation of imported goods.
  • Zero rated supply.
  • Exempt supplies.
  • Input tax credit.
  • Registration.
  • De-registration.
  • Learnings from EU on implementation of unified VAT System.
  • Illustrations on how VAT works.

Salient features of VAT law based on draft law proposed by Government of Saudi Arabia.

MODULE 3: Discussion of key VAT concepts such as time of supply, place of supply, registration requirements, difference between a taxable supply and an exempt supply etc. & Impact on business operations (including distinction intra-SEZAD vs. SEZAD to Oman vs. cross border)
    • General method of valuation.
    • Related person valuation.
    • Fair market value concept.
    • Valuation of nominal supplies.
    • Adjustment to value of a supply.
    • Cancellation or termination of contract.
    • Alternation in terms of conditions.
    • Change in nature of supply.
    • Procedure when there is an adjustment to value of supply.
    • General.
    • Pre-registration purchases.
    • Condition for deduction of input tax.
    • Ineligible inputs/ input services.
    • Proportionate deduction in case of common use.
    • Capital assets.
    • General.
    • Door delivery supplies.
    • Export.
    • Services to non-GCC residents.
    • Transportation of services to outside the country.
    • Medicines and medical equipment.
    • Supply of investment materials.
    • Exempt imports.
    • Collection of tax on imports.
    • Payment of import tax to returns.
    • Conditions for claiming refund.
    • Procedure for refund.
  • Exemption in VAT and how the tax is calculated by businesses that deal in exempt supplies.
    • Financial services.
    • Lease or license of residential estate.
    • Tax calculation.
    • Registration.
    • Group registration.
    • De-registration.
    • Who has to issue tax invoice.
    • Time of issue.
    • Contents of tax invoice.
    • Simplified tax invoice.
    • Contents of simplified tax invoice.
    • Issue of credit and debit notes.
  • Payment of tax
    • Due date of payment of tax.
    • Payment of tax in case of assessments.
    • Mode of payment.
    • Details to be provided.
    • Extension of time to pay tax.
    • Time limit for filing returns.
    • Assessment procedure.
    • Correction of tax returns.
MODULE 4: Impact of VAT

Place of Supply

  • Place of supply – General.
  • Place of Supply – Real estate services.
  • Place of supply – Telecommunication services.
  • Place of supply – Other services.
  • Place of supply – Goods situate in member country.
  • Exempt supply.
  • Zero rated supplies.
  • Export
MODULE 5: Roadmap on how organisations may structure its preparation for VAT & changes necessary to accommodate VAT
  • A thorough evaluation of the overall impact of VAT on business determining how VAT affects the cost of their goods/services sold and productivity.
  • Assessing the impact of VAT on demand of products/services.
  • A thorough understanding of the concepts by all concerned including top management.
  • A thorough understanding of the procedural of the law and the procedures by finance team dealing with VAT. Proper training of the staff concerned.
  • The ERP and other accounting systems to be geared for VAT compliance.
  • Alteration/amendment to all pending purchase orders, contracts regarding VAT implications.
  • Proper documentation to ensure further input tax deduction and VAT compliance.
  • VAT training which includes working on a real life project assignment.
MODULE 6: Impact on Budget 2019
  • Impact on Government Revenue.
  • Impact on Government Expenditure.
  • Impact on GDP/GNP/ NNI.
  • Impact on Fiscal Deficit.
  • Impact on competitiveness of Oman companies and the consequent impact on their profits & GDP.
MODULE 7: Vetting of ERP software compliance with GCC VAT framework.
  • VAT mapping of business processes and transactions.
  • Effecting changes to all underlying ERP to reflect VAT processes.
  • Deciding on use of VAT specific tools.
  • Putting in place appropriate governance and control.