Indirect taxes are any tax that can be passed on to another entity or individual. They are typically imposed on a manufacturer or distributor who transfers the burden to the final customer in the supply chain.
Indirect taxes are paid by the customer the moment he/she buys the goods or services from the manufacturer or distributor and later this manufacturer/distributor pays it to the government along with the return which has to be filed either on monthly or quarterly basis. Examples of indirect taxes are Value Added Tax (VAT), Excise Tax (SIN Tax), Custom duty, etc.
Numerous nations have expanded their dependence on Indirect Tax as a major source of income (including Oman) and these duties massively impact the businesses of any organizations. As a result of which it becomes extremely important to hire professional services of an expert who can guide and overview the entire indirect taxation of the company as per the local laws and enables the smooth flow of compliance requirements.
Poor compliance can result in huge penalties, damaged reputation and missed opportunities, which is not favorable for any organization.
Additionally, one should keep in mind that the impact of failure to comply with the provisions of the indirect taxation will be on the profit and loss figures of the organization, which will be very substantial.