Oman Guide: Registration for VAT in Oman (2023)

VAT in Oman

The Sultanate of Oman announced the implementation of VAT in the state through Royal Decree no. 121/2020. The Royal Decree forms the basis of the new VAT regulations in the Sultanate. The tax authorities have ample time to formulate the required procedures and regulations on Oman VAT Law.

The correct procedure and requirements for registering the VAT in Oman will come into the light once the registration starts. Businesses and individuals in Oman falling under the VAT minimum threshold must start preparing for the VAT filing.

Anticipated Registration Process of Oman VAT Law

According to the Tax Authority in Oman, the VAT registration in Oman process will be electronic. The Tax authority’s E-service section includes other taxes like income tax, excise tax, and withholding tax already.

The registration process is likely to start in January 2021 according to the Tax Authority in Oman. All registration process will be through its online e-services portal.

The Applicant will have to provide the company ownership and business-related information. The necessary information required to register with the portal may include:

  • Copy of trade license
  • ID card and Passport copies of business owner and partners
  • Company’s Memorandum of Association 
  • Contact details, E-mail for registration and other contact details
  • Bank account details
  • The income statement for the last 12 months
  • Nature of business and activities performed

Each registering entity in Oman will be allotted a VAT registration identification number other than their currently held tax number.

The VAT registration in Oman for all entities will take place on a self-assessment basis initially. That means the business will have to assess their annual turnover either for the past 12 months or the future 12 months.

Oman VAT Effective Date, Rate, and Period

According to the current information available, all entities have a transition period of six months. The effective date for VAT implementation is the 16th of April, 2021. Any business transaction taking place on or after the date will include the VAT implications.

The VAT in Oman will be implemented at a rate of 5%.

The VAT assessment will be made on the annual turnover basis. Any business with a threshold income of OMR. 19,250 can register on a voluntary basis. All businesses with an annual turnover of OMR. 38,500 will have to register on a mandatory basis.

Penalties for Non-Registration under Oman VAT Law

The self-assessment rule describes all entities to make the annual turnover assessments. If an entity does not register for VAT without legal reasoning, it will have to face imprisonment, or fine, or both.

Deliberate failure to report correct annual turnover and VAT will also incur penalties or imprisonment or both.

Mode of Payment in Oman VAT Law

All entities entitled to the VAT requirements will have to deposit the VAT returns electronically through the E-Services portal.

Our VAT experts have been assessing the recent developments on the VAT in Oman. We’ will keep you updated on the newer developments and the registration as soon as the authorities in Oman provide the official word. To keep yourself informed on the latest announcements and happening related to Oman VAT Law, contact us at

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