According to Article 70 the taxable person must maintain their tax invoices, records, customs books and documents related to the import and export of goods, and relevant documents for a minimum period of 10 years and 15 years in relation to real estate.
Its important to Maintain tax records:
- Monitor performance of your business and financial activities like income and balance sheets.
- To keep an eye on sources of income which will help to separate non-taxable income.
- Fulfils taxation law obligations.
- Understanding your gross and net profit.
- Ease of calculation of tax.
- To avoid errors while preparing tax returns.
The Executive regulations of Oman will provide minimum one month probably for filing of VAT return with information like: exempt and taxable supply values, value of imported goods, VAT on revenue transactions and net VAT amount.
Business revenue above 38,500 OMR must mandatorily register for VAT in Oman. Voluntary registration can be done for companies of revenue above 19,250 OMR.
For a business run by non-resident entity in Oman making taxable supplies, VAT registration in Oman is mandatory and there is no minimum threshold for them.
In Oman VAT is calculated for a business at the end of a month, in addition to previous 11 months.
- Deliberately refraining from vat registration in Oman.
- Refraining from providing actual data
- Forged document submission
- Not maintaining or damaging documents and records intentionally.
Violators shall be punished with minimum 1-year imprisonment and maximum imprisonment of 3 years and fine of minimum 5,000 OMR and
maximum of 20,000 OMR. If the offence is repeated the court may double the fine and increase period of imprisonment.
Delay in payment of VAT at end of every month will levy a rate of 1% as penalty on the unpaid amount.
Violating above mentioned laws may have unprecedented impact on reputation of company, operation of business and relationship with authorities.