Muscat- April 26, 2021:

All companies in Oman need to have a certificate of registration from the Tax Authority before charging customers value added tax (VAT) for goods and services. Those who do add the 5 percent VAT charge to customers without this certificate would be subject to penalties under the law.

According to an official at the organization, this is for all commercial enterprises including SMEs that offer goods or services subject to VAT. If owners of establishments that are not registered with the authority purchase goods from suppliers who have imposed VAT on them, they must retain all of the invoices of goods received, inclusive of VAT prices. The business must then register with the Tax Authority to obtain the registration certificate and commit to submitting tax declarations on time added the official.

VAT at the rate of 5 percent came into effect in Oman on April 16, 2021. The first round for companies to register for VAT took place between February 1 and March 15, 2021.

Although this period has elapsed, companies are required to register themselves in the second duration- April 1 to May 31, 2021.

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