Correcting an earlier VAT return

The situation

Wrong declarations can attract a fine of 1 to 25 percent of the difference.

The law

• VAT Law, Royal Decree 121/2020 (penalties): Late return fine OMR 500 to 5,000; late payment 1 percent per month; wrong declaration 1 to 25 percent of the difference; evasion 300 percent

What it means for you

Correct quickly under the Tax Authority's procedure. Voluntary correction before an audit reduces risk. If VAT was underpaid by OMR 2,000, the fine range is OMR 20 to 500.

What to do

1. Quantify the error.
2. Follow the TMS correction process.
3. Pay any extra VAT.
4. Fix the cause.

Related

• Refund position
• Late VAT return fine
• Record keeping period
• VAT evasion penalty
• Nil VAT return
• VAT return due date