Oman Expands Digital Tax Stamp Program to Excisable Beverages

The Oman Tax Authority (OTA) is advancing its Digital Tax Stamp (DTS) initiative by extending its application to excisable beverages, including carbonated drinks, energy drinks, and alcoholic beverages. This move marks the third phase of the DTS program, aiming to bolster tax compliance and supply chain transparency within the Sultanate.

Key Implementation Dates:

• June 1, 2025 (Customs Enforcement): All excisable beverages entering Oman for local sale must bear the official digital tax stamps. Oman Customs will enforce this requirement, ensuring that only stamped products are permitted entry into the domestic market.
• August 1, 2025 (Local Market Enforcement): The sale of excisable beverages without digital tax stamps will be prohibited within Oman. This measure applies to both imported and locally produced products, with the OTA conducting market inspections to ensure adherence.

Scope of the DTS Program:

Initially applied to cigarettes and other tobacco products, the DTS program's expansion now encompasses:

• Carbonated drinks
• Energy drinks
• Alcoholic beverages

Notably, sweetened drinks have been excluded from the current phase until further notice. Additionally, duty-free sales and exports remain outside the program's scope.

Objectives of the DTS Program:

The primary goals of implementing digital tax stamps are to:

• Protect government revenues by ensuring accurate tax collection
• Combat illicit trade and counterfeit products
• Promote fair competition within the market
• Provide real-time data for informed tax policy decisions and supply chain analysis

Methods of Application:

Manufacturers and importers have two options for affixing the digital tax stamps:

1. Direct to Products (DTP): Suitable for production lines, this method involves printing unique serial numbers directly onto products, supporting various packaging styles such as cans and bottles.
2. Physical Markers: These are 15mm x 15mm labels applied manually within secured areas. Designed to prevent reuse, they offer an alternative for entities without automated production capabilities.

Compliance Recommendations:

Businesses involved in the production, importation, or distribution of excisable beverages in Oman should:

• Register Products: Ensure all relevant products are registered in the OTA's Excise system to facilitate seamless customs clearance and compliance.
• Acquire Digital Tax Stamps: Procure the necessary stamps through the OTA's designated channels and apply them according to the specified methods.
• Stay Informed: Keep abreast of OTA communications and updates regarding the DTS program to remain compliant with evolving regulations.

Penalties for Non-Compliance:

Failure to adhere to the DTS requirements may result in administrative penalties ranging from OMR 500 to OMR 5,000, as outlined in Oman's Excise Tax Executive Regulations. To avoid supply chain disruptions and financial repercussions, timely compliance is essential.

Conclusion:

Oman's expansion of the Digital Tax Stamp program to include excisable beverages underscores the nation's commitment to enhancing tax compliance and ensuring product authenticity. By implementing these measures, Oman aims to foster a transparent and equitable market environment, benefiting consumers, businesses, and the broader economy.