Thursday 09 / May / 2024
MUSCAT: The Oman Tax Authority (OTA) on Sunday issued Resolution 521 of 2023, bringing in key changes to the executive regulations of the Value-Added Tax (VAT) Law.
Among the major amendments is allowing charitable organisations to seek refunds for VAT payments. This refund can be claimed if the payments were made for non-profit purposes and adhere to the laws of the Sultanate of Oman. This extends to encompass taxes on goods and services directly linked to charitable activities.
In line with the amended law, individuals or entities aiming to recover VAT must initiate the process by submitting a request to the tax authority for each tax period, which occurs on a quarterly basis. It's essential to note that the total amount sought for recovery should not be less than RO15. The refund request must be accompanied by a specific form, alongside the relevant invoices. The tax invoice or a simplified tax invoice should also be supplemented with a receipt indicating the deduction of the tax amount from the applicant's bank account.
The tax authority is under a strict obligation to make a decision regarding the refund request within a 30-day timeframe, calculated from the date of receiving all the necessary documents. Any delay in this process will result in the request being deemed as rejected.
OTA is further obligated to return the approved amount, whether in full or in part, to the taxable person within 15 days from the date of notifying them of the decision.
Moreover, Resolution 521 also addresses the recovery of taxes paid upon the import of goods from non-taxable individuals, exceeding the tax due. To initiate this refund process, a request must be formally submitted to OTA for each tax period, which recurs every three months. Just like with charitable VAT refunds, it is vital that the total amount to be recovered is not less than RO15.
To complete the refund request, the following documents must be provided:
A - Concrete evidence demonstrating the amendment to the customs declaration.
B - Substantiation of customs tax recovery, if applicable.
Similar to the previous scenario, the tax authority is mandated to make a decision on the refund request within 30 days from the date of receiving all necessary documents. In the absence of a decision within this timeframe, the request will be deemed rejected. Subsequently, OTA is bound to return the approved amount, in whole or in part, to the taxable person within 15 days from the date of notifying them of the decision.
Furthermore, Resolution 521 addresses the possibility of refunding tax collected on imported goods when these goods are re-exported in accordance with the conditions and regulations delineated in the Unified Customs Law. This can be accomplished through the submission of a VAT refund request to the tax authority for each tax period, which recurs every three months. As with the other refund scenarios, the total amount to be recovered must not be less than RO15.
The refund request should be accompanied by the following documents:
A - Evidence of tax payment.
B - A statement providing details on the re-export and any customs tax refund, if collected.
In keeping with the established protocol, OTA must make a decision on the refund request within 30 days from the date of receiving all the requisite documents. Just as with the other cases, OTA is obligated to return the approved amount, whether in full or in part, to the taxable person within 15 days from the date of notifying them of the decision.
