Oman just recently joined three other members of the GCC (Saudi Arabia, UAE & Bahrain) that started implementing VAT and the new regime is expected to start from April 2021. Along with the implementation of VAT Oman has also released several penalties that have been approved. These penalties are ranging from jail time to fines for violators.
A range of 1000 to 10000 Rials is set regarding fines and jail time could be from two months and up to a year. This does not mean that violators cannot be jailed and fined at the same time though.
One violation that has been specified is that of the “responsible person”. This person is the one that has been appointed by the company for all matters regarding tax and also specified to the government as a point of contact. Failure to appoint such a person or if the appointed person fails to notify of a substitute during his absence for more than 90 days then this will lead to a penalty.
At the same time typical reasons such as not performing the company’s required tax returns, fudging of data, inaccurate data and irregular documents can also lead to fines and penalties.
Late submissions can result into 1% fine over the owed tax for every month.
Penalties can be doubled for repeat offenders and prison time can also be increased but by no more than 50%
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