Oman Guide: VAT in Oman Registration Process (2023)
Persons required to register for VAT in Oman
- Every person who has a place of residence in Oman; conducts a commercial, industrial, professional or other activity in Oman; and has annual supplies that exceed or are expected to exceed the Mandatory Registration Threshold i.e. 38,500 OMR.
- Any person who does not have a place of residence in Oman but is obligated to pay tax.
Elements of annual supplies for VAT registration in Oman
The value of supplies for VAT registration shall include the following:
- Value of Taxable Supplies except for supplies of capital assets.
- Value of the Goods and Services supplied to the Taxable Person and subject to the Reverse Charge Mechanism.
- Value of Intra GCC supplies of Goods and Services.
Value of supplies in Oman for the relevant periods
Calculation of Annual Supplies before the effective date of the Law:
To determine the value of taxable supplies before the effective date of the Law a taxable person will need to determine which of its supplies would be taxable supplies as if the Law had effect on the date of calculation.
The actual annual supplies are the total value of supplies made during a 12-month period, which starts from November 1, 2019, to October 31, 2020, whereas the expected annual supplies are the total value of supplies that are expected to be made during a 12-month period, which starts from October 1, 2020, to September 30, 2021.
Calculation of Annual Supplies after the effective date of the Law:
The actual annual supplies are the total value of supplies made during a 12-month period ending on the last day of any month.
Registration timelines based on annual supplies in Oman
A person who is required to register must apply for registration with the Oman Tax Authority within the dates specified in the Tax Authority Chairman’s Decision number (3/2021), as shown in the table below:
|Phase||Taxable Turnover (OMR)||Mandatory Registration Timelines||VAT Effective Date|
|Phase 1||Above 1 million||1-Feb-2021 to 15–Mar-2021||16 April 2021|
|Phase 2||From 500,000 upto 1 million||1-Apr-2021 to 31-May-2021||01 July 2021|
|Phase 3||From 250,000 and upto 499,999||1-Jul-2021 to 31-Aug-2021||01 Oct 2021|
|Phase 4||From 38,500 to 249,999||1-Dec-2021 to 28-Feb-2022||01 Apr 2022|
|Other||Non-residents||Non-residents doing business in Oman are required to register|
Voluntary Registration in Oman
A person having minimum annual taxable turnover or expenses over OMR 19,250. However, the moment taxable turnover goes above the Mandatory Threshold at different phases, have to do Mandatory registration.
Submission of registration application as per the procedures
- Registration for VAT in Oman is done on Oman’s tax authority website i.e. https://taxoman.gov.om/portal/ar/home
- A person logins at electronic authentication service
- Register for VAT by filling out the electronic form
- Making sure that the data entered is correct and application satisfies all the documentary requirements
- Apply and keep the receipt of the application from the Oman tax authority
- The registration application is assessed by the authority. On approval, the authority will issue a VAT registration certificate containing the tax registration number and other appropriate information.
Points to be kept in Mind
- VAT registration certificate in Oman must be displayed at every location of conducting business, such as the head office, branches, stores, and many more.
- The VAT identification number in Oman must be stated in all documents issued by the taxable person such as tax invoices, communications, and all other documents.
- Non-compliance with registration provisions for VAT may attract penalties as per Oman VAT Law.
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