An E-System is now in place for businesses registering for Excise tax

Excise tax will be implemented in Oman from 15 June 2019. The electronic system for Excise tax registration of taxpayers is also ready as announced by the Secretariat General for Taxation (SGT).

The executive regulations are expected to be issued shortly. The SGT has prepared the system to manage registration and licenses, submission of tax return and suspension or payment of tax.

Excise tax guides explaining the implementation processes and procedures for taxpayers, and a brief guide on the frequently asked questions are available on the SGT website.

Public seminars are expected to be held by the SGT to educate the taxpayers about Excise tax procedures.

Taxpayers should monitor developments of the implementation of Excise tax and identify other requirements that may arise when the executive regulations are issued. Also, taxpayers should assess their readiness to comply with the new Excise tax law, including requirements for compliance with transitional provisions (payment of inventory tax).

Those who are required to register by law are listed below:

  • Importers and producers of Excise goods
  • Those who release Excise goods for consumption
  • Holders of excise goods of which the due tax is unpaid
  • Those who are authorized by the SGT to establish a taxable warehouse.

Everyone in possession of excise goods must file a transitional Excise tax return for the stock of Excise goods held on the day prior to the date the law comes into effect.

In addition, the taxpayers should keep records and statements that enable the SGT tax inspectors to verify the information disclosed in the tax returns.

In case of non-compliance, the SGT has the authority to carry out inspections on taxpayers. Additionally, they can impose penalties in case of any violation. The law stipulates a punishment of three years' imprisonment and a fine of RO 20,000 in case of tax evasion.

Businesses affected should continue to prepare for the introduction of Excise Tax on 15 June 2019, or start working on the requirements if they have not commenced preparation. Should you have any questions or need assistance in preparing for the forthcoming implementation and beyond, please contact a member of the Deloitte Oman Indirect Tax team or your local Deloitte contact for more information.

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