The Oman Tax Authority has published the much-anticipated VAT Guide for Input Tax. The guide provides clarifications on key matters relating to input tax credit such as:
- Steps to deduct input tax
- Ineligible input tax claim (For e.g. Foreign VAT incurred),
- Conditions for input tax deduction
- Taxable person’s economic activity (for claiming input tax)
- Input tax incurred by a non-registered person (Pre-registration input tax claim)
- Mixed use for economic and non-economic activities
- Blocked input tax
- Mixed use for taxable and exempt supplies
- Alternative apportionment methods
- Input tax related to capital assets