The Tax Authority on Tuesday evening held an awareness sessions on value-added tax (VAT), as part of the awareness campaign ‘With you and for you’ with the aim of introducing VAT and its application mechanism.
The session discussed the mechanism for calculating VAT, with a good number of attendance.
The session began with a review of a set of tax concepts and an explanation of the scope of imposing value-added tax, which is imposed in accordance with the provisions of the law and its executive regulations on the import and supply of goods or services at every stage of production and distribution.
VAT is imposed on several types of supplies, namely, intra-regional supplies made from a supplier who has a place of residence in the sultanate to a customer residing in a GCC country or vice versa – and supplies subject to VAT at 5 per cent or zero per cent and the assumed supply.
The law defines the conditions for commercial transactions to be subject to VAT, including the supply of taxable goods or services which must be made by a taxable person, and the import of goods must be from outside the sultanate or from outside the GCC countries. The supply must be in the sultanate for the purposes of conducting the activity. The session also reviewed the tax treatment according to the type of supply and place of supply, and the tax treatment of import and export.
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