Oman begins VAT implementation from today

Oman has begun implementation of the Value Added Tax (VAT) from today April 16 with the expectation to raise bout RO 400 million (over $560 million) annually, Zawya reports.
The sultanate officials have indicated that all necessary preparations and requirements for the VAT implementation have been put in place including the issuance of tax-related legislations, operating the tax computer system, and electronic linking with the authorities concerned, UAE-based media notes citing the Oman Establishment for Press, Publication and Advertising (OEPPA).
Authorities will collect the non-cumulative tax, which is calculated at a rate of 5 per cent on the final price of a product or service provided to the consumer through the supply chain from production to the stage of the final sale of the good or service.
The new tax will not cover food commodities; medicine and medical equipment and related goods and services; education and related goods and services; financial services; undeveloped lands; resale of residential properties; passenger transport services; renting real estate for residential purposes; gold, silver and platinum; supplies of international transport and interchange of goods or passengers and the supply of related services; rescue and aid aircraft and vessels; crude oil, petroleum products, and natural gas; supply of means of sea, air and land transport for the transport of goods and passengers for commercial purposes; supply of goods and services related to transport; and supplies for people with disabilities and charities.
The Tax Authority, TA, will apply administrative fine of not less than 500 and not more than 5,000 in the event of failure to submit tax returns by the date set for their legal submission, failure of the taxable person to display the registration certificate in a conspicuous place, failure of the taxpayer who has cancelled his registration to keep the records, accounting books and documents.
Additional fine of not less than 1 per cent and not more than 25 per cent; of the difference between the tax value on the basis of the real tax that must be declared and the tax value based on the previously submitted tax return, will be imposed in the event of the failure of the taxable person to declare the real tax in his declaration for any tax period, or a fine of 300 per cent of the difference in tax due related to tax evasion, Zawya notes.
In the event of refund of tax value based on incorrect documents or data, failure to submit an application to cancel the registration from the tax in the mandatory cases specified in the law and regulations or failure to supply the prices of goods and services including the tax, the TA will also impose an administrative fine of not less than RO 1,000 and not exceeding RO 10,000.

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