Oman Guide: VAT Fine Services in Oman
In the executive regulation of Oman VAT Law, it has been made very clear that any negligence or violation by a taxable person regarding VAT registration or filing or misrepresentation will not be ignored at any cost. Administrative penalties and VAT fines in Oman are additional amounts payable by a person or a business which can also lead to imprisonment for breaching the provisions of the VAT Law in Oman. VAT fines services provider in Oman plays an important role in keeping the company operations aligned with executive regulations of Vat law in Oman.
Aviaan Accounting is a leading VAT fines services, auditing, accounting, and consultancy firm operating in Oman with a keen focus to ensure that the company is not violating any VAT law and abiding by all rules and guidelines provided by Oman Tax Authority.
VAT Fines and Penalties in Oman
Every violation of Oman VAT Law is treated in a different way depending on the nature and consequences of the situation. Given below are the VAT fines and penalties applicable under Oman VAT Law:
VAT Fines; Article 100 of Oman Executive Regulation
According to article 100 of the Oman VAT Law, Imprisonment of 2 months to 1 year and/or a VAT Fine of RO 1,000 to RO 10,000 will be levied in case of the following situations:
- Unable to identify a responsible person.
- When a responsible person fails to notify the Tax Authority of his replacement, in his absence from the country for more than 90 days.
- When the person fails to appear in front of tax authorities.
- When the person fails to inform the tax authority regarding changes or updating the data with the tax authority.
- Unable to maintain tax invoices or correct accounting records, import, and export documents related to the tax return.
- Issuing tax invoices with the incorrect tax amount will also attract the VAT fine in Oman.
- Unable to submit a Tax Return for any Tax Period within the provided deadline.
- If a taxable person unable to provide the tax invoices, accounting books, data, records required by the tax authorities will attract penalties.
VAT Fines; Article 101 of Oman Executive Regulation
According to Article 101 of Oman Executive Regulation, imprisonment of 1 year to 3 years and/or VAT Fine of RO 5,000 to RO 20,000 will be imposed in case of the following situations:
- If a taxable person consciously fails to register with the Oman tax authority within the time frame provided by the Tax Authority in accordance with the threshold criteria and the Ministerial decision no. 3/2021.
- If a taxable person deliberately tries to reduce the tax due amount by submitting the incorrect tax return or forged the supporting accounting documents.
- In case of someone deliberately motivates the taxable person in presetting returns or records or other documents to Oman Tax Authority that are incorrect.
- If a taxable person deliberately destroys, hide, or dispose of any documents, records, accounts, lists, or any other document requested by the Authority for submission in case of assessment, within (1) year from the Authority’s notification receipt date.
According to Oman executive regulation, in the case of repetitive non-compliance by the taxable person, the court may double the penalty and increase the imprisonment to the maximum of the legal threshold of punishment but not exceeding half this threshold.
VAT Fine Services Provided by Aviaan Accounting in Oman
Businesses in Oman are responsible for carefully and accurately documenting their business income, business cost/expense, and associated VAT charges in accordance with VAT regulations. Oman Tax Authority has approved the list of administrative penalties that will be imposed on businesses for violations of the tax laws. Aviaan Accounting helps companies in dealing with VAT fines by offering the following best-in-class VAT fine services:
- Liaising with Tax Authority to verify if the fine is accurate
- Calculation of VAT liability, filing returns, registration, and deregistration
- Ensure compliance with the submissions
- Assist in waiving off fines and penalties
- VAT litigation process
- Advisory services
- Guidance on the document’s requirements and filing procedure
Aviaan Accounting offers VAT Fines Services in Oman:
Aviaan Accounting supports and guides its prestigious clients from different sectors of the industry in preparation for the applications and impact of Oman VAT Law. We are equipped with highly qualified staff who are dedicated to satisfying the needs of the clients in the best way possible. We perform the following VAT fines related services in Oman:
- Conducting detailed impact analysis in order to evaluate the initial effect of the Oman VAT Law implementation on the business.
- Planning a comprehensive business transactions map to identify and incorporate VAT in the relevant stages, the dates when the tax will become due and relevant return filing deadlines.
- Facilitating and developing an understanding of clients in adapting the changes required to be VAT compliant.
- Reviewing cash flow pattern and additional cash required after VAT impact.