Tax Oman have announced VAT Fines and Penalties in Oman ranging from 1,000 to 10,000 Omani Rials for Tax Violations. Penalties in Oman are levied on people when they violate the tax rules of the country. A business registered for VAT requires to follow the critical compliance responsibilities declared under tax Oman. Issue of tax invoice, VAT return filing, maintenance of records and books, etc. are some of the important aspects to be followed by the businesses. 

Any kind of violation or objection would result in heavy VAT fines and penalties in Oman. The penalties in the Sultanate of Oman ranges from a fine of 500 OMR to the extreme leading to imprisonment, based on the intensity of the violation or breach. 

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List of VAT Fines & Penalties in Oman

As you know, there are various VAT accountabilities to be followed by the registered business. The VAT laws and regulations in Oman have specific penalties and punishments based on the types of violations. 

Tax Violations and Penalties in Oman as per the Article 100:

1. Failure to issue a tax invoice when required by the law.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

2. Failure to maintain the required financial records such as tax invoices, books of accounts, supportive documents related to VAT return in Oman.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

3. Following incorrect tax invoice format in Oman.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

4. Issuing tax invoice with the incorrect tax amount in Oman.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

5. Late VAT return filing in Oman.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

5. Failure to assist the Tax Oman Authority delegates and representatives to perform the required tax assessment and audit.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

6. Failure to provide the tax invoices, accounting records, and supportive documents required by the tax authorities in Oman.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

7. Failure to inform the tax authority in Oman regrading changes or updating the data with tax authority.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

8. Failure to appear in front of Tax authority as requested by the Oman Tax Authority.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

9. Failure to display VAT registration certificate in a visible place.

  • Fine – not less than 500 Omani Rial and not exceeding 5,000 Omani Rial

10. Taxable person fails to identify a responsible person and responsible person fails to notify to the Tax Authority on his replacement, in his absence from the Sultanate of Oman for more than 90 days.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

11. Submitting incorrect VAT refund based on incorrect documents or details.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

12. Failure to apply for cancellation of registration in the compulsory cases specified in the Oman VAT law.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

13. Failure to present prices of goods and services inclusive of tax.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

14. Incorrectly received a tax refund fails to repay the amount due as soon as they become aware of the error.

  • Fine – OMR 1,000 to OMR 10,000, and or
  • Imprisonment – 2 months to 1 year

Tax Violations and Penalties in Oman as per the Article 100:

1. Failure to apply for VAT registration within the time frame provided by the Tax Authority in accordance with the threshold criteria.

  • Fine – OMR 5,000 to OMR 20,000, and or
  • Imprisonment – 1 year to 3 year

2. Deliberately submits the incorrect tax return or forged the supporting accounting documents to reduce the tax due amount.

  • Fine – OMR 5,000 to OMR 20,000, and or
  • Imprisonment – 1 year to 3 year

3. Deliberately hide, destroys or dispose 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.

  • Fine – OMR 5,000 to OMR 20,000, and or
  • Imprisonment – 1 year to 3 year

Role of the Chairman in Fines and Penalties in Oman

A chairman is solely accountable for initiating public prosecution or process in the offenses provided in the Law. The Chairman regulates with respect to the offenses, prior to issuing the final judgment, on a condition of paying not less than twice the minimum limit, and not more than twice the maximum limit of the penalty mentioned of the crime. 

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VAT Penalties Oman

You may note that, in Repetitive Non-Compliance, the court would double the penalty and lengthen the imprisonment to the maximum legal threshold, yet not exceeding half this threshold. 

At BMS, we brief the orientation for you on types of violations under the VAT Law and related penalties levied by Oman Tax Authority for non compliance of the following factors:

  • Fail to register;
  • Delay in filing VAT returns;
  • Fail to maintain books of records;
  • Delay in paying VAT;
  •  Fail to display the price of goods with VAT included;
  • Incorrect submission of tax returns; 
  • Fail to issue tax invoice and credit note in tax;
  • Fail to de-register.
How BMS Auditing in Oman can help?

BMS Auditing Oman provides expert guidance for any type of VAT concerns and compliance issues by joining hands with our tax experts. We cover all the elements of VAT and providing best VAT services in Oman. Our VAT services include:

 

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