Tax Authority of Sultanate of Oman has issued a statement on Sunday which states that "Tax Authority would like to remind taxpayers that they must submit the VAT returns for the 2nd and 3rd quarters of 2021 by the stipulated deadlines. The Tax Authority has started summoning non-compliant taxpayers and imposing any applicable penalties."
This comes as a reminder to the earlier statement that was released on 20 September 2021 by them that requested the taxpayers to file the return in time. The statement said, "Tax Authority would like to draw the attention of the taxpayers who have not submitted the VAT return for the tax period ending on 30 June 2021, to kindly submit the required return before 23 September 2021, to avoid any legal penalties that reach up to OMR 5000, via the E-portal of Tax Authority."
Tax Authorities seem to have issued the above statements basis their observation that many taxpayers have not filed their returns within the prescribed timelines or defaulted in filing the returns. Unlike the earlier communication, vide this statement the Authorities seem to indicate that they have started to summon taxpayers who have not been complying with prescribed compliances and have also started to impose the applicable penalties. Accordingly, it is urged that the businesses should start complying with the law and file returns and pay the applicable taxes, if not already done.
As an update, Article 72 of Chapter 8 of Value Added Tax Royal Decree No. 121/2020 read with Article 202 of Chapter 12 of Value Added Tax Executive Regulations, the taxable person shall file a tax return to the Authority within 30 days following the end of the tax period, defaulting which would attract legal penalties.
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