For import of services, businesses need to calculate the VAT and remit it at the time of filing VAT returns. In the case of goods, VAT liability needs to be paid at the customs port or at the time of filing VAT return if a deferred payment scheme is been opted. In short, all import of goods or services, one need to pay VAT on reverse charge basis. Receiving goods or services by a VAT registered recipient from a Supplier who has no Place of residence in the sultanate or any GCC states and is not subject to tax in the Sultanate. Import of Goods or services other than the GCC States.The following are the supplies liable for reverse charge VAT in Oman. The Oman VAT Law and Executive Regulations notify certain type of supplies on which VAT need to be charged on reverse charge mechanism. What are the supplies liable for reverse charge VAT in Oman? Here, Max Enterprises being a registered importer, is required to charge VAT on RCM basis and remit it to the government. Max Enterprises availed consultation services from A-1 Consultations, located in India for OMR 50,000. Here, A-One Spare Ltd, being a registered importer, is required to pay VAT 5% on OMR 5500 i.e. Reverse charge mechanism is also called RCM Example of reverse charge mechanism (RCM)ДЄ-One Spare Ltd, a registered dealer in spare parts and accessories in Oman, imported spare parts worth OMR 5500 from Speed Motors Ltd, located in India. For example, on importing services, the recipient of the service has to pay VAT to the government. Reverse charge mechanism is a concept under which the recipient or buyer of services has to pay tax to the government unlike the forward charge, where the supplier has to pay the tax. Stay VAT Compliant with TallyPrimeвЂ™s Amazing Capabilities

In this article, letвЂ™s understand more about the reverse charge mechanism and its calculation.

For few notified supplies, VAT registered businesses are required to charge VAT on a reverse charge mechanism. In short, this is known as a forward charge mechanism.Д«arring few supplies, VAT will be levied on all the taxable supplies based on the forward charge mechanism. If a VAT registered supplier is making a taxable supply, he needs to charge VAT and remit the same to the government. In most cases, the responsibility to levy, collect and pay tax to the government is on the person who makes taxable supplies i.e., on the supplier.

Quantumwise charge being zero