GCC Indirect Tax Weekly Digest

KSA developments

VAT amnesty and Customs self-correction scheme expiring on 30 September

The Kingdom of Saudi Arabia (KSA) Value Added Tax (VAT) amnesty will expire this Wednesday, 30 September 2020; therefore we urge clients and taxpayers to take urgent action now with respect to progressing any amendments, late registrations or corrections to previously submitted VAT returns.

In addition, the Voluntary Disclosure Program (VDP) for Customs which was originally announced on 1 January 2020 as a six-month window for importers to correct past Customs records without penalties was recently extended to 30 September 2020.

This is a prime opportunity for importers to correct any under-declared import and dutiable values, misclassified goods where lower duties were paid and/or non-compliance with exemption conditions – importers will only be required to settle the underpayments that are due.

We would be pleased to discuss the likely impact and issues that you may need to deal with. With the VAT amnesty and Customs VDP ending this week, there is an extremely limited timeframe to ensure all measures are considered and we urge that prompt action be taken in this regard.

Oman developments

OTA issues reminder on Excise Tax expansion

The Oman Tax Authority (OTA) has reminded taxpayers that the enhanced scope for Excise Tax on sweetened drinks applies from this Thursday, 1 October 2020.

Those holding stocks of sweetened drinks for commercial purposes are required to undertake inventory reviews and transition returns of what is on hand on 30 September 2020, plus pay any applicable Excise Tax within previously communicated timelines.

For further details please see our previous alerts and updates. The OTA expects correct classification, supported by appropriate expert or laboratory reports/certificates where necessary.
 

This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.