Oman Guide: How to pay VAT in Oman?
The Taxable Person for VAT in Oman shall pay the VAT due on the tax return, adjustment to tax returns or on assessments or adjustments made by the Authority, on the lawfully prescribed dates through one of the following means:
- Bank checks in the name of the Authority.
- Depositing the amount due in the account created by the Authority for such purposes. Provided that a certified copy of the deposit receipt issued by the bank is submitted.
- Issuing a written order to bank transfer the VAT from the Taxable Person’s account to the Authority’s account and notify the Tax Authority for VAT in Oman. The consideration of VAT due paid only on credit of the amount in full to the bank of Authority.
- Any other means determined by the Authority.
Non-payment of VAT due on the lawfully prescribed date will be collected by following the procedures of administrative enforcement of the System for Collection of Taxes, Fees, and others for VAT in Oman. The amounts are payable to the Units of the Administrative Apparatus of the State.
What is the additional VAT exemption for VAT in Oman?
The Chairman for VAT in Oman may provide an exemption in the following cases:
- The death of the debtor without heritage or with a debt-heavy.
- If the Taxable Person for VAT in Oman who owes VAT dissolved and liquidated or declared bankrupt and the liquidation proceeds or the bankruptcy funds fail to cover VAT due.
- Proven that the Taxable Person has no funds for accomplishment.
- The Taxable Person who owes VAT in Oman ceases to carry out his activity or profession and the absence of funds for execution.
- Cases in which the payment of the original VAT after the deadline is due to reasons or circumstances that the tax debtor cannot anticipate.
What is the procedure for additional VAT exemption for VAT in Oman?
The submission of application for additional VAT exemption in Oman to the Chairman with details, and the Authority shall decide on the exemption application within a period not exceeding thirty days. Otherwise, the consideration of rejection of the request. The Authority for VAT in Oman may withdraw the exemption decision if it is proven to be incorrect information or misleading reasons. Initiate the necessary procedures to collect the additional VAT due.
How to pay VAT for Imports in Oman?
The Directorate General of Customs for VAT in Oman shall collect the VAT on imported goods by applying the prescribed rates. According to its procedures, and deposit it in a separate account created for this purpose. It is not permissible to release these goods before paying the VAT due in full, except at VAT postponement.
Suspension of VAT by the Oman Law. The importer is required to submit to the Directorate General of Customs any of the following guarantees:
- A bank guarantee.
- A financial guarantee.
- A written guarantee.
- Any other type of guarantees determined by the Directorate General of Customs.
How to apply for Postponement of VAT for Imports in Oman?
The Taxable Person may request the postponement of payment of the Tax due on imported goods under the Law by the following conditions:
- The Taxable Person for VAT in Oman must be registered with the Authority by the provisions of the Law.
- The Taxable Person shall be compliant with all the obligations imposed by the Law and these Regulations.
- The Taxable Person not previously convicted of a crime stipulated in the Law
- The imported goods are to carry out the Taxable Person’s activity.
- To apply at least one month before the entry of the imported goods into Oman, and the Taxable Person should have provided bank guarantees or any similar guarantee as requested by the Authority.
- Any other conditions determined by the Authority for VAT in Oman.
The submission of an application to the Authority for VAT in Oman. In the form prepared for that purpose. It should include all details and documents to meet the conditions. The exemption application shall be decided on within a period not exceeding thirty days. Otherwise, considered rejected. In all cases, the Authority must notify the Taxable Person and the Directorate General of Customs of its decision to approve or reject the request or cancel the postponement.
What are the other provisions for paying VAT in Oman?
Preparation of a register by the Authority with the details and information related to Taxable Person’s Tax accounts to record and keep for ten years. The Taxable Person for VAT in Oman may request the Authority to view the details and information related to its accounts and make copies thereof by the rules determined by the Authority.
The offsetting is between what Taxable Person owes to the Authority and what is due to be paid. Provided that the amounts are final and not in dispute. The making of offsetting in the following order:
- Offsetting between the amounts paid by the Taxable Person over what is legally leviable and the amount liable and payable by the Taxable Person for VAT in Oman.
- Offsetting between the amounts paid by the Taxable Person over what is legally a liability and the amounts due by him and payable according to any other tax law.
- The Authority for VAT in Oman must notify the Taxable Person of the offsetting and its result on the form prepared for this purpose.
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