Understanding the Role of the Responsible Person in VAT 

As businesses navigate the complexities of Value Added Tax (VAT) compliance, the introduction of the Value Added Tax Executive Regulations No. 53/2021 has brought significant changes, particularly concerning the role of the Responsible Person. This article aims to clarify the obligations and responsibilities of the Responsible Person as stipulated in Section 3 of the regulations, emphasizing the importance of adhering to these guidelines for effective VAT management. 

Appointment of the Responsible Person 

Notification of Absence 

Article 4 stipulates that if the Responsible Person intends to be outside the Sultanate for more than ninety days during the tax year, they must inform the Authority in writing at least fifteen days before their departure. This notification should include: 

• The reason for the absence 

• The expected duration of the absence 

• An application for the appointment of a temporary Responsible Person to cover their duties during their time away. 

The Authority is mandated to respond to this request within seven days; if no response is received, the request is considered accepted. This provision underscores the necessity for continuity in compliance and tax obligations, ensuring that the Taxable Person’s interests are protected during the Responsible Person’s absence. 

Submission of Tax Returns and Documents 

Article 5 outlines the procedures for submitting tax returns, financial statements, and other required documents to the Authority. These submissions must be made: 

1. Through the Authority’s electronic portal for tax returns and related attachments. 
2. Via email for financial statements and other documents. 

It is essential for the Responsible Person or their representative to obtain a confidential password, granting access to the electronic portal. This password is critical, as the Responsible Person bears full responsibility for the accuracy and completeness of all submissions. 

Compliance and Responsibility 

Finally, Article 6 reinforces that all documents submitted electronically or via email are considered signed by the Responsible Person upon receipt by the Authority. This provision highlights the importance of diligent oversight by the Responsible Person, as they are accountable for ensuring that all information submitted is truthful and in compliance with the regulations. 

Conclusion 

The Value Added Tax Executive Regulations No. 53/2021 establishes a clear framework for the role of the Responsible Person, emphasizing accountability and compliance. Businesses must understand and adhere to these regulations to maintain good standing with the tax authorities and avoid potential penalties. By ensuring that the Responsible Person is well-informed and vigilant, Taxable Persons can navigate the complexities of VAT with greater confidence and efficiency. As we continue to adapt to evolving tax regulations, it is crucial to prioritize transparency and diligence in all VAT-related matters. 

Summary

Responsible Person in ensuring VAT compliance. Upon registration, Taxable Persons must notify the Authority of their Responsible Person’s appointment, providing specific details such as name, occupation, and identification documents. If the Responsible Person plans to be outside the Sultanate for over ninety days, they must inform the Authority at least fifteen days in advance and apply for a temporary replacement. All tax returns and relevant documents must be submitted via the Authority’s electronic portal or email, with the Responsible Person held accountable for their accuracy. Overall, these regulations emphasize the importance of transparency and diligence in VAT management to avoid penalties and ensure compliance. 

Disclaimer:   

The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk.   

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