VAT Enabled Accounting Software Oman -2021 is a type of consumption tax that is accessed on several products and services at each stage of the production process. Like other countries, Oman has also established VAT across the country. The compulsory VAT registration threshold from OMR 35000. Nonresident businesses should VAT register if they supply taxable products. Taxation is a complicated factor where an accounting software with VAT navigate you through
- Charge VAT to customers efficiently
- Calculate the amount of VAT in local currency
- Get easy reports on VAT
- Understand revenue of the company
- Improve cash flows
- Handle payments
- Tax filing
It is important to integrate VAT with accounting software for a business to run flawlessly. VAT in Omen requires the business to be within a certain threshold limit under the government-listed law and regulations. Some of the activities required by the registered business maintain account books, issuing tax invoices, filing VAT returns, on-time tax payments, and so on. When the VAT is enabled with the accounting software it makes the task easy for the user.
Some of the factors to be considered for VAT accounting software are
- VAT compliant tax invoice – according to Oman VAT law and regulation certain details have to be made mandatory and captured in the invoice. If you issue a VAT compliant invoice, your customer will be able to claim input tax. Invoice is a critical aspect of business in Oman.
- Bilingual Tax invoices – the Oman VAT regulations state that the invoice can be in Arabic. However, for the convenience of the customer, you can generate an invoice in Arabic with provided English translation stated below. VAT accounting software should be able to generate multiple language invoices.
- Alert capabilities – the VAT accounting software should have inbuilt capabilities to prevent all possible errors from occurring while recording the transactions. For example, when you miss selecting the tax ledger for a transaction it should be alerted for the user.
- Manage all types of suppliers – when your business deals with different types of transactions, VAT accounting software should be capable of generating the different types of tax for those businesses.
Try Our Valuable Products for your Business Growth
Business in Oman requires to keep VAT record for a minimum of ten years from the end of the year to which it is related and should be available at any time. As a business owner, you always prefer to avoid paying additional tax or penalties. The owner has to be well aware of the business transactions, stock supply, determine the supply values, and stay compliant with VAT.
The VAT form designed by the Sultanate of Oman tax authority requires the collective information of the sales VAT. For example, the VAT paid on purchases and the VAT being charged for the customers. Small businesses suffer from the manual maintenance of all the transactions. When VAT accounting software comes into frame, it helps the user to easily manage the transactions and automate for further reference. Benefits of having VAT Accounting software are
- Performs all transactions accurately
- Creation, maintenance, and updating of financial records
- Avail Data-driven insights
- Better management of cash flow
With VAT accounting software you can manage the book of accounts which is the evidence of the minimum annual turnover threshold under the registration for your company. File VAT returns so that you can claim input tax. When your business is registered under VAT, you charge tax for the products being sold. You have to account for the VAT being paid and file your return. Make changes to comply with VAT – review your business process, practice, procedure, and pricing to align with VAT. Ensure to adapt to the unique needs of your business transactions and inform your customers.