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Oman tax authorities warn of fines for late VAT returns

Oman’s tax authority has warned taxpayers to submit their VAT returns on time – or face a penalty. 

“Tax Authority would like to draw the attention of the taxpayers who have not submitted the VAT return for the tax period ending on 30 June 2021. They must submit the required return before 23 September 2021 to avoid any legal penalties that reach up to OMR 5,000 via the E-portal of Tax Authority,” the Oman Tax Authority said in a statement. 

More businesses liable for VAT in Oman

Oman is rolling out its new VAT system in a phased approach. The initial phase of Oman’s VAT rollout commenced on 16 April 2021. Phase 1 affected businesses that generated over 1 million OMR of revenue annually. Under phase two, currently in effect, businesses generating revenue between 500 000 OMR and 1 million OMR must register for VAT.

Nonresident companies: no threshold for VAT registration

Note, however, that the VAT registration thresholds do not apply to nonresident businesses that operate in Oman. All nonresident businesses must register for VAT.  

Nonresident companies must also appoint a ‘responsible person’ to act on behalf of the company. The appointed person must be resident in Oman. 

Given the additional complexity of the requirement, nonresident businesses may therefore wish to seek expert advice on how to meet their specific VAT obligations. 

VAT returns & record keeping 

In order to comply with Oman’s VAT regulations, companies must maintain updated accounting records. They must also retain specified documents, such as invoices and customs documents. 

Businesses must ensure they have processes in place to present documents as and when requested by tax authorities. 

Technology that makes VAT compliance simple

Global VAT compliance is complex. Businesses need to ensure deadlines are always met, with VAT returns filed on time, in the correct format, everywhere they have a VAT obligation. Plus you need to ensure that all supporting documentation is accurate and complete. A single error could result in severe fines or other penalties.

Vatglobal’s technology-driven VAT solution makes global VAT compliance simple. Our proprietary compliance software is the most efficient way to manage VAT, everywhere you have an obligation. It’s a simple solution to the complex problem of global VAT compliance. 

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