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Deregistering VAT

We are closing. Do we need to cancel our VAT registration?

The situation

A VAT registered business keeps filing quarterly returns until its registration is cancelled.

The law

  • VAT Law, Royal Decree 121/2020: 5 percent VAT; mandatory registration above OMR 38,500, voluntary above OMR 19,250; quarterly returns due 30 days after the quarter
  • 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

If you stop trading but stay registered, nil returns are still due and late filing fines of OMR 500 to 5,000 can apply. File the final return, account for VAT on remaining assets as required, then deregister.

What to do

  1. File the final VAT return.
  2. Account for VAT on remaining assets as required.
  3. Apply to deregister on TMS.
  4. Keep VAT records for 10 years.

We can do this for youLiquidation and deregistration: VAT, tax card and commercial registration: OMR 1,200

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