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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Businesses urged to register for Excise Tax

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MUSCAT, JUNE 1 - Omani businesses engaged in the import, production and distribution of goods subject to the new Excise Tax must register their particulars before June 15, 2019 when the new levy come into force, according to the Secretariat General of Tax.


Four select categories of food, beverage and tobacco products will attract an additional levy in the form of Excise Tax with effect from June 15. They comprise: tobacco and tobacco derivatives (100 per cent), carbonated drinks (50 per cent), energy drinks (100 per cent), and special purpose goods (alcohol and pork products) at 100 per cent.


“Any person engaged in any of the following activities in Oman must register for Excise Tax purposes: Producer or Importer of Excise Good; Any person who releases an Excise Good for consumption; Holder of any Excise Goods for which the Tax Due has not been paid; and Licensee,” said the Secretariat General of Tax (SGT) in guidelines published ahead of the levy coming into fore.


“There is no registration threshold for Excise Tax, therefore any person involved in, or has the intention to be involved in, any of the activities listed in Section 3.1 must register and account for Excise Tax. Any person involved in, or with the intention to be involved in, any of the activities listed in Section 3.1 must submit an application for registration to the SGT, prior to the implementation of the Law (June 15, 2019),” the tax authorities further stated.


“In order to register for Excise Tax purposes, please log on to the SGT portal and follow the necessary steps.


The SGT will review the application for registration and will provide an Excise Tax number to the Taxpayer upon approval,” the tax department explained.


In addition to registering for Excise Tax with the Secretariat-General of Tax, such businesses are also expected to comply with a list of requirements. They need to, for example, ensure that effective IT systems are in place to manage the Excise Tax to reduce the risk of non-compliance. Furthermore, the businesses in question need to maintain Excise Tax records for five years, on paper or electronically (records must be accurate, complete and readable).


Other compliance requirements are as follows: Submit periodical Excise Tax returns and payments; Comply with any inventory and movement control systems with respect to the suspension of Excise Tax; and Keep customs and transport documents related to the movement of Excise Goods, especially with respect to transactions subject to refunds and/or exemptions, or made under Excise Tax suspension status.


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