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VAT Assessments

Independent VAT assessment services to help organisations review compliance positions, identify risks, and address assessment outcomes effectively.
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VAT Assessments

Overview

VAT audit services in Muscat involve a thorough and structured examination of an entity’s VAT accounting records and VAT return filings. All businesses registered for VAT must be prepared for potential VAT audits conducted by the Tax Authority.

A VAT audit verifies VAT liability by reviewing accounting records, bookkeeping systems, and VAT returns maintained by the taxpayer to ensure accuracy and compliance.

Increasing Audit Activity

Tax Authorities are taking an increasingly active approach to conducting audits and site visits. In many cases, simple system or processing errors have resulted in penalties and VAT assessments for issues that could have been avoided through proper review and compliance checks.

VAT Audit Procedure

A VAT audit is the Tax Authority’s examination of a taxable person’s VAT obligations. The audit is conducted to ensure that all VAT liabilities are correctly calculated, declared, and remitted within the prescribed timeframes.

A structured approach and methodology are applied to review post-implementation VAT compliance, allowing errors and inconsistencies to be identified and corrected. Where a post-implementation VAT review has not yet been performed, undertaking such a review is strongly recommended to validate ongoing compliance.

Options for VAT Refund

Where excess input VAT arises, the taxpayer has the following options:

  • Request a VAT refund from the Tax Authority.

  • Carry forward the excess recoverable VAT to subsequent tax periods, where it may be used to offset future VAT liabilities and/or penalties, or a refund may be claimed at a later stage.

Documents Required for a VAT Audit

A VAT audit may require review of the following documentation:

  • Receipted tax credit notes and supporting documentation

  • Issued tax invoices and related records

  • Records of purchases where input tax was not deducted

  • Export records for goods and services

  • Accounts or tax invoices that have been amended or corrected

  • Details of imported goods, including customs declarations and supplier invoices

  • Documentation supporting all supplies and imports

  • Tax invoices and records relating to the receipt of goods and services

Elements Covered During a VAT Audit

During a VAT audit in Muscat, the following key areas are typically examined:

  • Evaluation of VAT returns

  • Evaluation of input tax

  • Evaluation of output tax

  • Review of accounting systems and software

VAT Assessments elements

VAT Audit Services by Leaderly Auditing

Leaderly Auditing supports businesses across various sectors through structured VAT audit services. Information is handled securely, and support is provided throughout the audit process.

VAT services are designed to help businesses avoid fines and penalties by ensuring accurate compliance. These services include VAT registration, VAT return filing, VAT accounting, VAT audit support, VAT refund assistance, and VAT deregistration. Experienced VAT auditors support compliance by conducting professional VAT audit services.